In today's society the interest in digital cryptocurrencies, such as Bitcoin, is becoming more and more popular. While this interest increases, so does the interest and need for security and anonymity for the user. Bitcoin, which was created to simplify transactions between users without using a bank as a middle hand, is an electronic payment system and this report investigates how both security and anonymity can be applied to Bitcoins own software client “Bitcoin core”, and in what way it would impact the computer. This is tested by using Bitcoin core through the Tor network by connecting Bitcoin core with the Tor browser through SOCKS5.

Tor is an anonymous network which enables the possibility of untraceable surfing on the internet. The anonymous network is based on onion routing, where every data packet is en-crypted in several layers with every jump on the network.

To reach a conclusion several tests have been done, where both the setups were tested, this was done in a Cisco lab at University West and with two identical computers. The tests included timekeeping of synchronization and connections and monitoring network load and memory usage.

The final conclusion is that if Bitcoin core is run through Tor the performance increases regarding synchronization speed, connection latency and employing Tor still leads to slower synchronization, elevated latency and greater network load when compared to a non-Tor connection.