Still curious and haven't gotten my question answered yet:
What is the difference between buying KYC bitcoin with cashapp/strike and buying nonKYC bitcoin through robosats or bisq and sending money with cashapp/strike? Someone could connect the dots if they wanted to. Is there a better option to send funds by that I'm just not aware of? #asknostr #plebchain
Now, if you send me Bitcoin, right you sent me bitcoin now I have non KYC Bitcoin because again you sent it directly to me. So who is gonna report to the I R S in this situation. Not me and hopefully not you
You can send a fiat payment to someone on those platforms and yes they do know who you both are of course. But the fact that there is an entirely separate bitcoin transaction involved is outside their purview. It could be for a pair of shoes, or who knows what—Unless the person’s retarded and they have you pay them on strike and then send you the sats from strike too, then that would kinda defeat the purpose
It breaks the link between your spend of fiat and your acquisition of Bitcoin. If someone tried really hard, maybe they could find the blockchain transaction (unless it occurred over Lightning, like with RoboSats), and assume a correlation to some p2p send of dollars. But unless you’ve gotten someone’s attention for some serious reason — or live in an extreme authoritarian environment — this is a very unlikely scenario.
You can pay someone via any fiat method though, if that’s a concern. Venmo, Zelle, cash-in-person, etc.
More important in most cases is that there isn’t a centralized, hackable, capture-able company who knows exactly how much Bitcoin you own and what those utxo’s are. Because *that* link is where your financial privacy is easily violated. It’s not about keeping everything perfectly secret, for most of us. Just reducing the risk of personal data leaks when these exchanges inevitably get hacked. No need to tie your home address to your Bitcoin holdings…
