Your Financial Data Is Not Reserved, Bitcoin Might Fix It

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Only a few Americans were probably sensible enough to keep gold coins in their homes on April 4, 1933. After all, there seemed to be nothing wrong with keeping the gold in the banks. All of that changed the next day, when President Franklin D. Roosevelt issued Executive Order 6102, which “forbids the hoarding of gold within the continental United States.”Those who placed their trust in third-party providers for security and privacy were abruptly pulled under the rug. Only those with a healthy distrust of the government and its custodians had the ability to make their own decisions. They could either comply with the confiscation order or keep their property.

After all, maintaining the ability to make your own decisions rather than having others make them for you is what privacy is all about.

Privacy is a form of insurance against a desperate situation.

Privacy is one of those things that you don’t realise how valuable it is until it is taken away from you.

Long-term conditioning is largely to blame for today’s lack of concern for financial privacy.For the better part of a century, privacy has been vilified when it comes to financial matters.

During the prohibition of alcohol in the United States in the 1930s, a coordinated attack on financial privacy began. This irrational ban spawned a new breed of high-risk entrepreneur: the gangster.Because it was difficult to prosecute gangsters in traditional ways at the time, the government pressured banks to inquire about their clients’ sources of income. Tax evasion was charged against those who couldn’t explain their earnings. Al Capone ended up in prison as a result of this.

Although Prohibition was repealed in 1933, the foundation for a financial surveillance regime remained.It was expanded in the following decades in the name of drug and terror wars (both very questionable in their results and brutal in terms of collateral damage). Though the justifications for financial surveillance have evolved over time, there is one overarching goal for eliminating financial privacy: to ensure that there is no way out of the tax system.The levy Leviathan is a ravenous beast that eats everything in its path. It also doesn’t appreciate fair play.

The rules are set by the state, and they can change at any time. “It doesn’t happen here,” you can tell yourself, until it does. Who would have guessed that a civilised country like the United States would simply steal from its citizens via executive order in 1933?National laws can change quickly in times of turmoil, usually to the detriment of citizens. Holding your own gold coins or Bitcoin private keys, which is currently legal, could be declared illegal in the future.

And we are currently in a period of upheaval. The 50-year experiment in pure fiat has reached its conclusion.The interest rate remains at zero percent. The Fed repo operations, quantitative easing, and stimulus checks are all here to stay. The debt-addled economy would collapse like a house of cards without these programmes. The Orwellian construct that is central bank digital currencies will be the next move to keep it standing.

And your bitcoin will be a dangerous decoy for such an attempt as well as a lucrative tax or confiscation target (as if there really was a difference).

Privacy is a form of insurance against desperation, both private and public. However, while you can legally protect yourself from private thieves, it is impossible to do so from public thieves.Ex ante, before the event, is your only means of defence. To put it another way, your only means of defence is to remain undetected.

There is no silver bullet for privacy.

Bitcoin allows for privacy, but not by default. Bitcoin privacy is similar to Bitcoin security in that it is ultimately up to you to decide.There are tools, educational resources, and people who are willing to answer questions; however, you must set aside time and take the necessary steps yourself.

The first thing to remember is that there is no one-size-fits-all solution to privacy. There is no single app, wallet, setting, or process that can guarantee your privacy in one simple step and for the rest of your life.Privacy is a state of mind. You must desire it and act on it on a consistent basis.

Privacy is a spectrum as well. Between transparency and anonymity, there are many steps. Even if you can’t achieve complete anonymity, it’s preferable to take at least a small step away from complete transparency. Don’t be the lowest-hanging fruit on the tree.

Keep your mouth shut and your mind open.

Your mind and mouth are the most powerful privacy tools you have.

However, it’s important to remember that you can do everything correctly from a technical standpoint and then undo the privacy gains later by simply talking too much.Even if you have the best Shamir scheme in place, how safe is it if you tell everyone about it on a pub crawl?

Make a mental distinction between questions about Bitcoin‘s features and best practises and questions about your personal stash, seed location, or stacking strategy.

So, without further ado, let’s look at some practical tips for enhancing your Bitcoin privacy.

KYC taint all Avoid

Keeping bitcoin “clean” is similar to caring for fine clothing; while knowing appropriate laundry techniques is helpful, it’s preferable to avoid getting it discoloured in the first place. KYC is the stain in the circumstance of bitcoin. KYC means “know your customer,” which is a legal requirement for service providers (such as exchanges) to accomplish on their customers.

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