evanbaer on Nostr: 2 years ago, I started building a hashrate marketplace and learned a few things about ...
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 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:
One is easy to find (NiceHash)
The other isn't (miningrigrentals.com)
Both sell hashrate for more $ than the hashrate will earn via mining 🤔
Who trades hard-earned bitcoin .... for hashrate which earns less bitcoin?
My first thought: This must be money laundering 🚫
And then I did my own research and learned about KYC..
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 take a closer look at what KYC means:
1) Do you want your personal info stored forever in the exchange's database? 📸 📄
2) Does the exchange keep transaction data separate from your info? 🤷♂️
3) Do you trust the exchange? 🚩🚩🚩🙅♂️
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 (!)
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 back their privacy.
When I started Rigly 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:
One is easy to find (NiceHash)
The other isn't (miningrigrentals.com)
Both sell hashrate for more $ than the hashrate will earn via mining 🤔
Who trades hard-earned bitcoin .... for hashrate which earns less bitcoin?
My first thought: This must be money laundering 🚫
And then I did my own research and learned about KYC..
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 take a closer look at what KYC means:
1) Do you want your personal info stored forever in the exchange's database? 📸 📄
2) Does the exchange keep transaction data separate from your info? 🤷♂️
3) Do you trust the exchange? 🚩🚩🚩🙅♂️
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 (!)
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 back their privacy.