Today I decided to philosophize a little bit, a little in a harsh language, maybe even with foul language, but I did it in good faith. I really hope this article will point someone in the right direction.
First, let's understand the basic properties of Bitcoin. Bitcoin is decentralized, which means exactly that it has no central governing body. Bitcoin belongs to all participants in the network and to no one at the same time. Bitcoin is not subject to censorship, the blockchain absolutely does not care if someone likes a transaction or not. There is no way to prohibit a transaction, which means that any artificial bans, sanctions and other bullshit do not work here. People can use Bitcoin from anywhere in the world, as long as they have some kind of connection to the outside world - Internet, mesh-networks, satellite communications, and even just SMS. And no one needs anyone's permission to broadcast a transaction to the network. All you need to transfer coins is a private key, which you can keep on paper or even in your head. Bitcoin is anonymous, there is no way, knowing the public address, to find out who signed a transaction and who sent it. Bitcoin is private, even though transactions are public - there are tools for ensuring that very proverbial privacy. Bitcoin is digital cash, you have to understand that very clearly. It's not a bank account, it's not electronic money, it's exactly the cache, which you can transfer in minutes, or instants, using the Lightning Network, anywhere. And it can only be destroyed by destroying the internet. Bitcoin is free, uncensored, uncontrolled, anonymous money. This idea alone is worthy of a 1M $ price.
All this imposes on the user the responsibility for the reliable storage of his private keys, and hence the need to improve his security literacy, learn how to look for the right information. But most people don't like to read, and that's what led to the development of scam services - centralized exchanges. Those smart guys just said, and shitbloggers posted referrals on youtube - we give you convenient(tm) service, just trust us your Bitcoins, and in return we give you trading tools, "staking", exchange for fiat money. After all, keeping your keys and using Bitcoins safely is not convenient, you have to think about it and give up some of your habits, like having a separate Linux system to work with Bitcoin. And it worked, the hamsters gave the exchanges their money, a lot of money, which allowed the centralized exchanges to manipulate the price of the Bitcoin as they wanted.
A bit later, Bitcoin began to be compared to banks, which means it needs regulation. If you read the first paragraph of this article carefully, it becomes clear that Bitcoin is the anti-bank, the exact opposite. If you came to the market and bought potatoes and cucumbers from the garden bed for cash, the bank took zero part in this process and did not even know the fact of money transfer from your wallet - this is exactly the same with Bitcoin. And of course the scam exchanges bent to the demands, some did it in advance, some when they were already shown a red light. Exchanges introduced KYC
If you think that exchanges did it only because of pressure from regulators - you're wrong, on the contrary, they found in it a tool to control users, as well as a means of scam. There are many cases of "shotgun KYC" - exchange allows you to make a deposit without any KYC, but withdrawal is possible only after all the procedures of "open mouth". Well, account freezing under the sauce of sanctions is already a classic, and it may end up in a stupid deletion of unwanted accounts and appropriation of Bitcoins. But the scam exchange does not even have a public office, not to mention the fact that it is not clear whose sanctions the exchange complies with. Naturally, the usefulness of KYC was sold to the public under the guise of anti-money laundering and combating the financing of "bin Ladens", and also that it would increase(!) the security of accounts. Of course, the mass leaks of personal data, passport scans and your gestures on camera are tried to keep quiet, and the accounts still cleaned out by hackers as before. In just a few years, a whole army of Binance Victims has emerged, who think the followers of Bitcoin ideas are all junkies, don't see in KYC nothing bad, and they have nothing to hide. Sorry, Satoshi, but we fucked up. The original bright idea has been trampled into the dirt, many people aren't even aware of its existence, and Bitcoin is just a "crypto" to them, old and slow. And the fact that KYC in Bitcoin is completely ineffective against criminal activity due to the properties of the system itself, does not occur to them. Andreas Antonopoulos was very clear about this:
But even this was not enough for the exchanges and their cronies. They came up with "dirty Bitcoin". The essence of this myth is that due to the publicity of transactions, it is possible to trace the movement of all Bitcoins throughout whole history. This means, if you know for sure that an address was used for criminal purposes, you can mark all the outgoing Bitcoins, and after all, you can show the user the percentage of cleanliness of his wallet, and what if he somehow got some of his Bitcoins from a "dirty" source. They also add there sanctions and other nonsense, and concocted a legend that 40% of Bitcoins were allegedly involved in criminal activity. And as a consequence, the scam services got one more reason to steal people's money under the guise of AML.
All this is a fiction, bullshit and scam. The inner work of AML check services is not disclosed anywhere and in any way. There is no confirmation of the sources of information, how AML service knows, for example, that the Bitcoins came from dark market or some "sanctioned" exchange. Also, there are known cases of discrepancies in the percentage of "cleanliness" when checking the same addresses, from which we can conclude that the AML service just draw their results. The services themselves do not guarantee that your Bitcoins will pass AML on the exchange, having passed their verification. On the other hand, the real dark figures will "whitewash" their Bitcoins, using privacy tools, because they know very well how Bitcoin works. And they will sell Bitcoins even on Binance without any problems.
And now, the "useful" AML services consider as "clean" only Bitcoins, received either from miners, or from exchanges with KYC/AML. So, it's just another way to get you under the wing of the CZ. If you still don't understand why this is fucking shit and what's the point, just ask yourself, where did Binance put the Bitcoins received from FTX or Bitzlato? Many crypto magazines have written bluntly that Binance was Bitzlato's largest "counterparty." So did CZ "burn" them or maybe appropriate them? No, he withdraws those "dirty" Bitcoins to you. Expectedly, there appeared people ready to buy your "dirty" Bitcoins at 10% discount. And some exchanges began to use the good old shotgun - you have send dirty Bitcoins to us, AML-bot told us about it, we trust the information from which, but we can not confirm its validity. If you want a refund - please, Get an Anal Probe.
Great article on the same topic https://bitcoiner.guide/nokyconly
List of services without KYC/AML https://kycnot.me
Lightning Network https://docs.lightning.engineering/community-resources/resource-list
Bitcoin wallets with built-in privacy tools:
https://trezor.io - coming soon!
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