I recently published an article about Bitcoin as a human rights platform, in which I discussed many of the human rights that Bitcoin helps to protect. However, I couldn’t wrap my head around Bitcoin’s privacy. So I researched how to send and receive Bitcoin privately.
A close-up of a human eye on an IBM computer monitor, 1983. (Photo by Alfred Gescheidt/Getty … [+]
Everyone has the right to privacy, according to article 12 of the Universal Declaration of Human Rights. When you send and receive Bitcoin onchain, however, that record is public. The party you are sending or receiving from can see your public address and can search the block explorer online to see how much Bitcoin is left in your wallet and other addresses with which you have interacted.
Why is privacy important in Bitcoin transactions?
First, if you have a sizable balance in your wallet, you don’t want anyone finding out because it exposes you to a $5 wrench attack. A $5 wrench attack occurs when someone discovers you have a large stash of bitcoin and controls the keys to that stash. As a result, they physically assault or threaten you in exchange for your Bitcoin. You don’t want to be in a situation where it’s your life or your Bitcoin. As a result, it is in your best interest to keep your bitcoin private.
Second, it is widely known that corporations have been mining customer data and selling it among themselves for ad targeting and other purposes. Many people do not want third parties to know what they spend their money on, who they transact with, or where they spend it. When using banks, payment service providers, and e-commerce platforms, this is a difficult task because they are KYC’d and stand to benefit from this personal data.
So, how do you transact with Bitcoin privately?
Using Opendime is one of the simplest methods I’ve seen. Opendime enables you to load a predetermined amount of Bitcoin onto a physical flash drive that contains a private key. The recipient…
