hugomofn on Nostr: I don’t think people fully grok the risk of KYC in Bitcoin. KYC honeypots & data ...

I don’t think people fully grok the risk of KYC in Bitcoin.

KYC honeypots & data leaks are already dangerous in the analog world. But zoom out and fast-forward 20 years into a hyper-digitized, hyper-bitcoinized future, and that risk 10x’s.

In the analog, pre-hyperbitcoinized world, if someone gets your family’s name, SSN, and address, what’s the worst the can happen?

Maybe they impersonate you. Maybe they sell your data to ad companies.

It’s bad, but not end-of-the-world bad.

But with Bitcoin — a digital bearer asset — it’s different.

Once someone knows your family holds a large stack, you’re a forever target.

You don’t get spammed. You get hunted.
By North Korean hacker teams and ransomware crews from every corner of the world. Forever.

You do not want a target on your family’s back for eternity.

Zoom out & think long-term. KYC isn’t just a risk. It’s a ticking time bomb.

P.S. Some historical context: KYC was invented before the Internet.

Not only has it failed its objectives, its creators NEVER anticipated a world shaped by the Internet & Bitcoin.

The ramifications of this outdated policy will be insane in the years to come. A lot of people will get hurt.

quoting
note1g2r…2y54

KYC is a disaster waiting to happen.

If data leaks can happen to Coinbase, it can happen to anyone.

Related: never use a Bitcoin inheritance service that requires KYC.

You’re not just endangering yourself — you’re putting your family at risk too.

They’re even less equipped than you to defend against attackers.

Nunchuk’s inheritance protocol is non-KYC. That’s by design.