So that you don't get the wrong idea, I'll tell you up front I think that BTGuard is a scam. However, it is important you know why.
Even though theoretically a service which blocked the ISP from seeing the identity of the person who downloads something could be a reality, that's just not the way things work in our society. Realistically, the fact that the ISP is even sending you the data in the first place, completely negates even the remote possibility of being able to mask your identity. Not only does your ISP have your address and phone number, they also have you name, your bank account and credit card information, your credit history - and depending on who your ISP is, even your Social Security number! They have your friends, your family, your email address - truth is, there is no way to escape it.
On the other hand, to truly understand why a service such as BTGuard could not even remotely be a logical possibility, you need to think about the way you actually receive data to your computer in the first place. Let's talk about torrents specifically. When you download a torrent, that torrent alone is linked directly to you by your ISP. The torrent is downloaded through your internet browser, not through some "service" such as BTGuard. Then, you open a program such as Bittorrent, in order to allow numerous random people across the world send you data. Now, consider the path in which the date reaches you from the other people's computers:
First, it leaves their computer.
Next, it ports through their ISP.
Eventually, it gets to your ISP, and ports though a box directed towards your house, located at your ISP.
Then, it ports through your ISP into your internet "box" (not your router), which is owned by your ISP. Your ISP specifically allowed data to go through that box to get to your router in your house.
Then, for some ISP's, the data goes through a special router owned by the ISP company, which is located in your house and connected to your computer. Otherwise it goes straight from the box to your computer.
See it like this:
OTHER GUY > THEIR ISP > YOUR ISP > YOUR "BOX" (located at your ISP) > YOUR "BOX" (located in your house) > ISP ROUTER > YOUR COMPUTER.
Now, consider where BTGuard servers are located:
So the reality is that BTGuard has to port through your ISP just to even get to your computer in the first place. Due to the geographic location of the BTGuard servers, or any other "service" like them, it is physically impossible for them to "mask" you from your ISP, without actually hacking into your ISP's databases and physically removing your IP from your ISP's servers.
Thus, BTGuard is simply making profit off people who want to illegally download, and no authority is going to say anything because of the very nature of the business. Worse, you should consider the possibility that people at BTGuard actually work for the authorities who send you that dreaded letter. Even more, regardless of the derivation or background of the employees of BTGuard, consider the fact that the very purchasing of the services is basically the same as going to court and pleading guilty. Take that thought into your head.
In conclusion, from a statistical standpoint, you are actually safer by never even visiting the BTGuard website - and not only that, but the very illogical premise behind the idea of masking your identity from your ISP from the outside, proves that BTGuard and any related service is a complete and absolute scam. Add on the fact that people say their customer service is virtaully nonexistent - they never reply. Then think again before considering wasting your money and placing yourself in a position in which your statistical probability of getting that dreaded letter is drastically increased, not decreased. Don't let these guys fool you.
Then again, you might want to consider this bridge I have for sale in San Francisco...
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