Wish I understood what you are saying.
Discussion
Watch this
https://youtu.be/Mqe0QCxjKpI?si=s0pQMMFm0Cr-AEVK
Its actually not that difficult as it seems haha
Some weird terms indeed. But in reality it’s not that hard. Check out the link nostr:npub1w8rrew9yye3lla4hr5uuh7zx9he6qu2rd55hwx9ctyyp0rjqz45q9ch663 shared indeed ;)
UTXO = “Unspent Transaction Output” which is just the term for a balance of Bitcoin (denominated in units called “Satoshis” or “sats”…100,000,000 sats = 1 Bitcoin) that can spent or saved at will.
KYC = “Know Your Customer” which is a financial regulation where the identity of the customer needs to be verified before they purchase Bitcoin (or open a bank account as KYC was originally created for)
If you buy Bitcoin with no KYC that means there is no identity tied to that UTXO and it can be spent pseudonymously eg without anyone knowing the identity of the person who spent the funds.
The BTC sessions video will explain UTXO consolidation better than I can here but with the other terms defined it will make it much easier to follow.
Have a nice day! 🥩
Sweet thank you for explaining. At this point I am getting familiar with the kyc being custodial and non kyc non custodial wallet kind of situation. I am slow in remembering what the abbreviation translates to.
The utxo is new term to get used to.
So quickie question though...
I'm assuming once someone has moved their transactions from kyc to non kyc wallet they are trackable by gov agencies. And even if they open a new kyc wallet and move everything again from their first non kyc they are still trackable potentially? Or in theory it doesn't have to mean you are transferring your money back to yourself. It could be you sent them to someone else who is unidentifiable?
What's the best way to get off the records?
No no your getting something wrong.
If you buy Bitcoin on a centralized exchange on which you have to fulfill KYC and your transfer that to cold storage, it is still KYC Bitcoin.
Non kyc is just when you buy for example peer to peer (in cash from somebody else without KYC)
Once you mix the UTXOs, it’s not ‘compromised’ and turned into KYC
Custodial = means you do not hold the keys to the funds and they aren’t really yours. Wallet of Satoshi is custodial.
Self-custodial = you hold the keys and have sole control of the balance.
KYC means you bought the Bitcoin and it’s tied to your identity. You can deposit that Bitcoin is a custodial wallet or self-custody it the same. It’s just that KYC transactions can be tied to your identity.