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evanbaer / Evan Baer
npub185k…4f7w
2024-03-08 14:30:34

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.
Author Public Key
npub185kg4jpc3qeh3av7r0qgpc0knnpuyykppxueuswvy8k2ch8lrlcqrw4f7w