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Bitcoin and anonymity in the age of AI

Calyx

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Mar 14, 2023
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Pessimism and tinfoil time: a well connected AI will soon know (or already knows) who owns each bitcoin address, using various heuristics.
It's probably safe to assume that the Google AI (who remembers what you searched for in highschool, what e-mails you've sent in college and what ip adresses you had while travelling last year) is not (yet) connected to the Facebook AI (who knows your chat messages on whatsapp, tracked your external websites views through fb pixel, knows much of your online purchasing history and so on). However, they can become connected and even kept separately they're both powerful enough, discounting other gov owned databases or privately owned user databases of various companies.
Even if a btc owner was careful enough to hide all the traces (with the exception of some isolated server who mined and never sold), there would always be heuristics to out you: 'X talked about selling some btc OTC in that location with Y', 'Y using this IP address in this starbucks', user 'X used his visa card at that starbucks 5 minutes later', so on and so forth.
I'm sure an authoritarian regime will soon have enough info to send a guiltless person to jail for having cared about financial freedom.

Are you guys worried about this stuff? Are you shifting to privacy coins?
 
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Pessimism and tinfoil time: a well connected AI will soon know (or already knows) who owns each bitcoin address, using various heuristics.
It's probably safe to assume that the Google AI (who remembers what you searched for in highschool, what e-mails you've sent in college and what ip adresses you had while travelling last year) is not (yet) connected to the Facebook AI (who knows your chat messages on whatsapp, tracked your external websites views through fb pixel, knows much of your online purchasing history and so on). However, they can become connected and even kept separately they're both powerful enough, discounting other gov owned databases or privately owned user databases of various companies.
Even if a btc owner was careful enough to hide all the traces (with the exception of some isolated server who mined and never sold), there would always be heuristics to out you: 'X talked about selling some btc OTC in that location with Y', 'Y using this IP address in this starbucks', user 'X used his visa card at that starbucks 5 minutes later', so on and so forth.
I'm sure an authoritarian regime will soon have enough info to send a guiltless person to jail for having cared about financial freedom.

Are you guys worried about this stuff? Are you shifting to privacy coins?
No and no. Privacy coins do not solve whats promised and they are very old without gaining traction (since they add more issues than solving).

The key moving forward is adding privacy on higher levels of the very safe bitcoin base layer. This models the proven internet infrastructure (osi layers).
Ai is also no terminator and for the forseeable future a glorified word guessing algo.

Bitcoin from its nature is not anonymous. You can buy BTC for cash, that is not tied to you.
If you want privacy use Monero.
This comes at a big tradeoff in security. For that reason, monero sadly adds more issues than solving.
Low hashrate, complex integrations and it is very hard to detect inflation bugs.

Spending with bitcoin lightning already addresses it and one can do coinjoin for extra-paranoia, however I think that is rarely needed.
 
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