satoshielf on Nostr: Mhmmm!! nostr:note1ft0rd9vsprgjupdmekszjnq2cpzc8c7aqhvxzwwhfrvvhgvvrmzsyf88wf

quoting note1ft0…88wf

2 years ago, I started building a hashrate marketplace and learned a few things about #bitcoin mining, money laundering and KYC.

When I started Rigly.io in 2022, I wanted to offer a way to mine #Bitcoin w/o buying hardware.

I wasn't the first person to have this idea, there are 2 other hashrate markets (NiceHash and Mining Rig Rentals)

Both sell hashrate for more btc than it will earn via mining...

This struck me as odd.

Who trades hard-earned bitcoin .... for hashrate to earn less bitcoin?

My first thought: This must be money laundering🚫

And then I did my own research and learned about KYC (Know Your Customer)

Whenever you buy bitcoin, you must verify yourself with the same level of ID as opening a bank account..

If you are treat your bitcoin like a bank balance (and trust your exchange) maybe KYC is no big deal..

But let's take a closer look at what KYC means:

1) Do you want your personal info stored forever in the exchange's database? 📸📄

2) Do you trust the exchange to keep this info separate from your bitcoin? 🙅‍♂️

Many answer "No" and choose to self-custody🔐

However the KYC data - including purchase history (!) - is still on the exchange.

This means your personal info is still tied to your bitcoin even when you self-custody (!)

And so many people choose to mine *new* bitcoin and get their privacy back⛏️

These are the people who are buying hashrate.

It isn't money laundering.

It's people taking their privacy back (by mining bitcoin)

^ I know this is all probably old news to a lot of bitcoiners, but it was new to me.