Diverter here: I want to talk today about some of this fud surrounding KYC & Non KYC thing. We are KYC’D at birth and there’s no point not doing NON KYC because then you can’t pay a mortgage with it because you just reveal your identity. And then what’s the point?
I think this misunderstanding stems from seemingly this belief that not doing KYC means that someone is like searching out some sort of shadow life to be completely anonymous forever lurking around the corner, never quite being revealed. But that’s not actually the case. This whole KYC thing is just about power. The state wants to control Bitcoin. This thing that is substantively outside of its control.
So how can it try to control this uncontrollable protocol, well it does that by trying to exercise power over the users of that protocol. Knowledge is power. So the more knowledge that the state can obtain about the users of this uncontrollable protocol the more the state can then weaponize its monopoly on violence and coerce those users.
So by not handing over your name, date of birth, social security number, address, a cute little selfie and maybe even a fun little video, then you maintain this knowledge and thus the power and you have it in your back pocket. So it’s about maintaining the power balance.
Bitcoin is supposed to be about taking the power away from the state, away from the central bankers and putting it back into the hands of the individual. One of the key ways that it does this is through pseudonymitty. When you do KYC and your identity to your amount of Bitcoin, you have given away that protection that was afforded to you by the Bitcoin protocol. You’ve given away so much of your power. Now, that doesn’t mean that you will never ever reveal your identity to anyone. Let’s say down the road, you do want to pay a mortgage with your non KYC Bitcoin, how would you do it? Well, you would pay it.
But the difference is you’re now choosing to reveal to this particular vendor, the information about yourself and about this certain amount of Bitcoin. The choice is not being taken away from you as it is by this KYC exchanges. So in the same way that privacy is not actually the search for anonymity, but privacy is simply having the ability to selectively reveal to the world what you want to reveal when you want to reveal it.
Not doing KYC is about choosing when and whom you reveal information about yourself and your Bitcoin holdings too. So it’s about making sure that balance of power is always firmly on your side, on the side of the individual and not on the side of the state and the central bankers.
And as a bonus, just in case the states seem to trend toward tyranny this will protect you from any sort of overreaching confiscation, blacklisting all these sorts of things. It keeps you off of the low hanging fruit list and it keeps again the power on your side. That’s it fud busted.