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 đ¤
Who trades hard-earned bitcoin .... for hashrate which earns less bitcoin?
My first thought: This must be money laundering đŤ
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? đ¸ đ
2) Does the exchange keep transaction data separate from your info? đ¤ˇââď¸
3) Do you trust the exchange? đŠđŠđŠđ
ââď¸
Many answer "No" and choose to self-custody đ
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 âď¸
These are the people who are buying hashrate.
It isn't money laundering.
It's people taking back their privacy.
evanbaer / Evan Baer
npub185âŚw4f7w
2024-03-08 14:30:34
Author Public Key
npub185kg4jpc3qeh3av7r0qgpc0knnpuyykppxueuswvy8k2ch8lrlcqrw4f7wPublished at
2024-03-08 14:30:34Event JSON
{
"id": "21206346be04473fbf946a5b83b81bd012f19f8de517fa3803b5cd589681adf1",
"pubkey": "3d2c8ac838883378f59e1bc080e1f69cc3c212c109b99e41cc21ecac5cff1ff0",
"created_at": 1709908234,
"kind": 1,
"tags": [
[
"t",
"bitcoin"
],
[
"t",
"bitcoin"
]
],
"content": "2 years ago, I started building a hashrate marketplace and learned a few things about #bitcoin mining, money laundering and KYC.\n\nWhen 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.\n\nThere are 2 other hashrate markets:\n\nOne is easy to find (NiceHash)\nThe other isn't (miningrigrentals.com)\n \nBoth sell hashrate for more $ than the hashrate will earn via mining đ¤\n\nWho trades hard-earned bitcoin .... for hashrate which earns less bitcoin?\n\nMy first thought: This must be money laundering đŤ\n\nAnd then I did my own research and learned about KYC..\n\nWhenever 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.\n\nBut take a closer look at what KYC means:\n\n1) Do you want your personal info stored forever in the exchange's database? đ¸ đ\n\n2) Does the exchange keep transaction data separate from your info? đ¤ˇââď¸\n\n3) Do you trust the exchange? đŠđŠđŠđ
ââď¸ \n\nMany answer \"No\" and choose to self-custody đ\n\nHowever the KYC data - including purchase history (!) - is still on the exchange.\n\nThis means your personal info is still tied to your bitcoin even when you self-custody (!)\n\nMany people choose to mine new bitcoin and get their privacy back âď¸\n\nThese are the people who are buying hashrate.\n\nIt isn't money laundering.\n\nIt's people taking back their privacy.",
"sig": "8cf736f230bd1c192335500648203f10093d677f56576b099301e96c54600cf2d97a5e5446bfa4bcc5ed62084593f3ce7d5b61385ef053732ae91e0252bdb0a4"
}