pull down to refresh
200 sats \ 19 replies \ @optimism 5 Jul \ on: Privacy and Fungibility: The Forgotten Virtues of Sound Money econ
Not fungible?
I would say not!! If you have a BTC and it is on the blockchain, is it exchangeable with any and every other BTC? The answer is no! The government, the exchanges and private parties can deny you the usage of your fungible BTC because you have a tainted coin. By the way, who and what can ever tell you your BTC is tainted? What is tainted? Who determines wheat ”tainted” is? Do you see the problems with fungibility now? Is there a way to anonymize the origin or use of BTC?
reply
Is there a way to anonymize the origin or use of BTC?
Yes, coinjoin. Currently, self-proclaimed authorities on taint - we call those spooks - are preemptively flagging all coinjoined utxo as suspect. So, I'm mixing everything I get to make the set of coins with mixing in their history as large as I can personally can help. Two things can happen:
- The total number of coins that is tradable on centralized exchanges keeps shrinking. This helps NgU.
- It becomes unmanageable for them and they have to give in, which means fungibility wins
Either way, bitcoiners win.
reply
Either way, bitcoiners win.
Only if you can begin using the “tainted” coinjoined coins, which, to my understanding are being blocked from being used. You lose everything else. Do you call that winning?
reply
‘Tainted Bitcoin’ does not exist. It is a 100% complete utter myth. Anyone who says otherwise has not bought/sold bitcoin peer to peer, or used it to buy things (especially with lightning).
Privacy is another issue… and something that Bitcoin can struggle with. But in terms of fungibility all Bitcoin is the same.
reply
How is that when they can shutdown addresses and stop transactions for those addresses? Each BTC or sat is identified as it is used and put on the blockchain, isn’t it?
reply
There is zero evidence they can ‘stop transactions’ with addresses. When the individual owns their own keys they own their bitcoin… no one can stop the transactions and there are tons of transaction miners could ‘censor’ and they dont. Its impossible to seize bitcoin you don’t have the keys for that’s the entire point.
Identified? So when a sat ‘moves’ from one part of the world to another… it’s identified? How? If I receive ‘sats’ in a lightning channel and you don’t know who I am… or where I am how can you trace the bitcoin??
It’s impossible.
reply
I think the taint is BS, too. However, when they are blocking and freezing ”tainted” accounts, the BTC cannot be moved around. In other words, the exchanges are working as arms of the state! Now, to find a way to get amounts of BTC off of the exchanges and in circulation anonymously.
reply