I have the same question
Thanks for bringing this up
Let's see what experts say
I'd like to think and hope that the approach you describe, which I'm contemplating as well, should give us what is called a "forward looking privacy"
In other words, exchanges where you bought a KYC Bitcoin, will still know when and how much you bought
And they can tell it to the tax authorities for example, to chase you for capital gains tax
Or to the dystopian government that wants to confiscate Bitcoin
However, they cannot, I hope, trace the very utxos anymore
They cannot say "I know this utxo in this address is yours"
So I think it gives a plausible deniability
You can refer to the last transaction they see on a Blockchain, the one you moved sats to lightning or liquid, and say, yes, it was me, I sold this Bitcoin
Or , yes, it was me, I moved to my lightning wallet and then I lost my phone in a boating accident
Well, at least that's my thinking
I'm not sure if I'm correct
And I hope the dystopian scenario will never happen and I hope I will find a jurisdiction with no tax on Bitcoin sale, or find a way to never sell, but borrow against Bitcoin
I want to be legal
Ok, let's see what others think
bitcoiner7 nym
npub13q…t55wf
2024-01-15 10:35:17
in reply to nevent1q…8lp8
Author Public Key
npub13qmz34g8fpkhpavfsx6wq00u4nhu28w5aa787r05q3f6zkpj9jzqtt55wfPublished at
2024-01-15 10:35:17Event JSON
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"created_at": 1705314917,
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"content": "I have the same question\nThanks for bringing this up\n\nLet's see what experts say\n\n\nI'd like to think and hope that the approach you describe, which I'm contemplating as well, should give us what is called a \"forward looking privacy\"\n\nIn other words, exchanges where you bought a KYC Bitcoin, will still know when and how much you bought\n\nAnd they can tell it to the tax authorities for example, to chase you for capital gains tax\n\nOr to the dystopian government that wants to confiscate Bitcoin\n\nHowever, they cannot, I hope, trace the very utxos anymore\n\nThey cannot say \"I know this utxo in this address is yours\"\n\nSo I think it gives a plausible deniability\n\nYou can refer to the last transaction they see on a Blockchain, the one you moved sats to lightning or liquid, and say, yes, it was me, I sold this Bitcoin\n\nOr , yes, it was me, I moved to my lightning wallet and then I lost my phone in a boating accident\n\nWell, at least that's my thinking\nI'm not sure if I'm correct\n\nAnd I hope the dystopian scenario will never happen and I hope I will find a jurisdiction with no tax on Bitcoin sale, or find a way to never sell, but borrow against Bitcoin\n\nI want to be legal\n\nOk, let's see what others think \n\n",
"sig": "ac0793176f92a4ebbc952d51fdb98afdcf001780b2df915cc93ccd4c0085021e5057f7efb1627166bfeaec9b868cabdefc340d9b6a40f7d5f05e126961018510"
}