Oddbean new post about login | logout What’s the point of kyc-free purchases if you don’t know where your sats come from? What if they come from a KYC purchase. Wouldn’t chainalysis easily identify where they went? And if gained illegally, that’s just traced to the buyer, no? Mr. Govt can say the seller’s sats should be blacklisted and as a buyer you’re sort of screwed regardless if they know your identity or not unless you coinjoin?
You don't pay tax on what you don't own. Also to avoid being on future target lists of wrench attacks.
So we should try and orangepill people, tell merchants how to use bitcoin, but without letting them understand you have bitcoin, and also tell them not to tell anyone else or they expose themselves to attacks….?
This is exactly why coinjoins are important. KYC free sats helps you remain a nym (one aspect of privacy). Coinjoins help you delink coins from specific people (you and others, whether they're nyms or known) which is another aspect of privacy and helps maintain Bitcoin's fungibility.
What about spending these Sats via Lightning during a vacation in a friendly jurisdiction, say El Salvador?
Do you mean KYC free purchases as in bitcoin it's self or KYC free goods and services?
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Not being registered on centralised exchanges in the first place is a great start as you aren't in huge databases that are future data breaches waiting to happen. Obviously coinjoins were for forward privacy but that's not ideal anymore. This is where monero pairs beautifully with bitcoin for spends with atomic swaps as it's so much less of a headache than privacy using lightning. You can argue that all that can be flagged also but if anyone is doing anything nefarious then using bitcoin at all is stupid lol.
Does swapping BTC to XMR help this?
Yes, but there is a caveat depending on your risk profile. https://njump.me/nevent1qqsvwp2nqrs09s58gssyr28j75u6z7282lxvxcpwrpn759pqnp6ljfqpz3mhxue69uhhyetvv9ujumn0wd68ytnzvupzpm0rm9thwnjat3ukvj6m2r6nzu8fqfxhdjgdn872jvj28nyhj5uzqvzqqqqqqyrmpkfk
Monero for long term storage swapping over to BTC for purchases and finally a little lightning / cashu for the occasional zaps and a coffee or two. Serai and Atomic swaps are beginning to make the border crossings quite seemless. That being said, chainalytics will always be able to trace the BTC to somewhere but by hopping in an out of XMR it could at least make blacklisting your wallets more of a challenge. The attack on TornadoCash made Mr. Govts' intentions very clear. Stay safe. 🥷🏼
I'd argue that you want to hold BTC longer term and swap into monero for spends. Especially when high fees in BTC
I see how this also works 💪🏼
As long as Monero has not implemented FCMP do not just hop in. Keep a small stack for weekly/ monthly spendings. Read about timing attacks. Most attacks on Monero involve metadata. That's why it is good to see CEX delist Monero. It makes EAE attacks and timing attacks based on KYC metadata outside of the Monero protocol basically infeasible.