Are bit-coins truly anonymous - what are peoples thoughts on e-money for increasing privacy ??? Any good sources of reading ??

NO - Bitcoins are NOT anonymous. Everybody can feature out the IP addresses of payments and can re-connect multible Bitcoin addresses to a single account.

At the last Chaos Communication Congress an analysis was presented: http://events.ccc.de/congress/2011/Fahr ... 46.en.html


But Bitcoins are only internet traffic. You can use an anonymisation service like JonDonym to stay anonymous.

1: Create an anonymous e-mail address only for your Bitcoin payments.
2: Use this e-mail address for registration on a bitcoin exchanger website. Use JonDonym for every login at the bitcoin exchanger website.