# What a Bitcoin trace can and can't prove

Following bitcoin from transaction to transaction is factual; claims about owners or which input paid which output are assumptions. Learn to read a trace.

Canonical page: https://mybitcoinexplorer.com/learn/tracing-bitcoin
Topic: Using a block explorer
Published: 2026-10-29
Updated: 2026-10-30


## The facts
These are recorded on-chain and verifiable by anyone:
- Transaction X spent output Y.
- Output Y paid amount Z to a script/address.
- The transaction was confirmed in block N.

> Diagram: A graph shows which outputs were spent together; it doesn't record which input funded which output — 0.7,0.3 → 0.6,0.3999

## The assumptions
Within one transaction, inputs are pooled. Bitcoin doesn't record that "input 0 paid output 1". Any claim like that is a **model**, such as:
- **FIFO** (first in, first out),
- **proportional** (each output takes a share of every input),
- **haircut** or **taint** methods.

Different models can give different answers for the same transactions.

## Ownership is inference
Saying "these addresses belong to the same person" relies on [heuristics](https://mybitcoinexplorer.com/learn/chain-analysis-heuristics), which can be wrong (for example with CoinJoin or payjoin). Linking an address to a real identity needs off-chain data, like exchange records.

## How MyBitcoinExplorer presents traces
- Every edge in the graph is a real outpoint with an exact amount in sats, read from our own node and index.
- No ownership, change or identity guesses are added, and no input is matched to a specific output.
- Limits are stated, not hidden: a free trace covers one address hop and up to 100 nodes; graphs that hit a limit are marked partial.

> A trace is evidence to interpret, not a verdict.


## Run a trace on MyBitcoinExplorer
Signed-in users can trace from any Bitcoin address in the [tracing workspace](/trace). Free accounts get one distinct starting address per month. Each trace shows the real spending connections around the address: every edge is an exact outpoint and amount, verified against Bitcoin’s confirmed chain.

## Questions to ask about any trace
- Which facts are on-chain, and which are claims?
- What model links inputs to outputs, if any?
- Which heuristics grouped addresses, and could CoinJoin or payjoin break them?
- Where did the trace stop, and why?


## Key takeaways

- Spending relationships between outputs are facts.
- Which input funded which output is a modelling choice.
- Ownership and identity are inferences that can be wrong.

## Common questions

### Can stolen bitcoin be traced?

Its movements can be followed on-chain. Identifying who controls it usually needs off-chain information, such as exchange records.

### Is tracing reliable enough for court?

Courts weigh it with other evidence. The methodology and assumptions need to be stated clearly.

### Can MyBitcoinExplorer tell me who owns an address?

No. We show factual connections only and never guess identities or common ownership.

### How many hops can a free trace go?

One address hop with up to 100 nodes; larger graphs are planned for paid plans.

## Related lessons

- [Chain analysis heuristics](https://mybitcoinexplorer.com/learn/chain-analysis-heuristics)
- [UTXOs: how Bitcoin balances really work](https://mybitcoinexplorer.com/learn/understanding-utxos)
- [Is Bitcoin anonymous?](https://mybitcoinexplorer.com/learn/is-bitcoin-anonymous)
- [How to read a block explorer](https://mybitcoinexplorer.com/learn/how-to-read-a-block-explorer)