Sell them back to the exchange where you bought them, then buy them again from a no KYC source.
Discussion
This is the only true way to do it.
You would need to remove the “record” that you hold Bitcoin. Even if you mix/coinjoin/obfuscate your KYC’d sats, the centralized record still shows your original purchase.
If you sell it, your stack is “gone”.
You’ll lose some fiat to exchange rates and fees, but this is the way to convert a stack.
Or you can stack KYC-free in a separate wallet, side by side.
What about Bitcoin-Lightning swaps?
Won't work because kyc is to inform the authorities you purchased btc and how much when where and what time
You’ll get forward-facing privacy on future transactions, but it doesn’t change the fact that your stack details are saved in a centralized record. That’s why the sell is necessary if you want to eliminate kyc
It’s also a taxable event
Unfortunately yes. That’s why I like the “two stacks, side by side” move.
Just start a new wallet, buy peer to peer, and hodl the KYC’d stack til “later”.
If Bitcoin is to grow and really take its place as a parallel accepted savings / currency I personally don’t see a need for non kyc. However if it is vilified and banned then obviously non kyc is imperative. I think alot of adoption will come from KYC as most people don’t want to fight the system, they just want to save alongside a trad system. Bitcoin is going mainstream imo. It’s too good to sideline, there will be battles over mining , forks , devs though
I get where you’re coming from. I’m very “middle way” about this.
The privacy of non-kyc is something everyone should have the freedom to utilize. There also need to be as many easy on-ramps to self custodied Bitcoin as possible.
We also need to remember the massive range and diversity of Bitcoin users in the future. I may be comfortably KYC’d in the northeastern USA and not really need to worry about my sovereignty, but the billions of people living in less-free countries don’t necessarily have the luxury of being comfortable with KYC.
Holding KYC sats doesn't feel that dangerous right now, but who knows what the future holds. Things could get very bad in the death throes of the empire. Also, imagine a "happy" scenario where Bitcoin shoots to the moon, but your history is leaked and gets into nefarious hands. Now bad dudes know you're filthy rich... and they know where you live.
🎯💯
All good points, I really meant that non kyc is not straight forward for the average person as they don’t operate like that. But yes unbanked masses need to buy non kyc from start. However they will just trade anyhow as they are using it daily. I’m not sure we are going down a completely 1984 route, it’s too complex a world to achieve as there are many who don’t want that also. Critical thinking is exhausting 😂
True that buying non kyc is not intuitive for those used to traditional investing. Absolutely
I agree with leaning toward optimism about the future, as well. After all, that’s kind of the point of Bitcoin and why it makes us all so hopeful/happy/positive about the world we’re creating for the next generations. It’s the first viable way to undo so much of the wrong that has been done!
Thanks for the discussion 🫂