Category: Privacy & Security

While many of us today understand that Bitcoin isn’t as anonymous as some once believed, it wasn’t always the case. Back in 2013, a significant scandal unfolded when the FBI seized Silk Road, the largest dark web marketplace. This marketplace was designed for users to buy and sell products and services anonymously, with Bitcoin serving as the primary means of exchange. Unfortunately, it soon became clear that the trail of Bitcoin addresses could be traced back to real individuals, primarily due to the introduction of credit card payments for Bitcoin transactions.

The concept of Bitcoin as a ‘private cryptocurrency’ was debunked early on. In the early years, around 2009 to 2011, when Bitcoin transactions were primarily peer-to-peer, it did provide a level of privacy. Sellers and buyers would arrange public meetings where one party would send their Bitcoin, and the other would make the payment directly in cash or through a wire transfer. However, in today’s landscape, with centralized exchanges requiring face scans and biometric KYC documentation, it’s evident that Bitcoin, like most other cryptocurrencies, can be easily tracked.

Many wonder how this transition occurred, turning what was once envisioned as a decentralized, peer-to-peer network into its current state. The mystery surrounding Bitcoin’s origins has raised numerous questions, particularly regarding the identity of Satoshi Nakamoto. Some intriguing speculations suggest that digital currencies, such as Bitcoin, might have been strategically introduced as a Trojan Horse by intelligence networks. The aim? To secure support from libertarian circles and ultimately promote centralized digital currencies. These theories, fueled by Dan Kaminsky’s discoveries and Benjamin Wallace’s propositions, hint at Nakamoto’s potential ties to British & American intelligence agencies.

Whatever the true origins for Bitcoin may be, it doesn’t take much to see the future vulnerabilities and privacy concerns of this asset class.

Bitcoin Maximalists often emphasize that only 21 million Bitcoins can ever enter circulation. However, as Caitlin Long points out, the existence of “paper Bitcoins,” represented by futures and options contracts, can result in an infinite number of Bitcoin derivatives. These contracts essentially stand as promises from intermediaries, like exchanges, to deliver actual Bitcoin. Unless you hold the private keys, you don’t truly possess Bitcoin; instead, you have a claim to Bitcoin, essentially an IOU. Consequently, significant institutional players such as JP Morgan can short Bitcoin without needing to hold a substantial supply of the underlying asset.

Likewise, the most direct approach to dictate what you can or cannot buy involves controlling the entry and exit points for cryptocurrency and fiat transactions, many of which pass through centralized exchanges. A case in point is how exchanges can delist tokens with a simple click, exemplified by Binance’s removal of certain privacy coins in France, Spain, Italy, and Poland.

Suddenly, many individuals find themselves compelled to resort to decentralized exchanges (DEXs) as alternatives for moving funds anonymously. While some DEXs do offer efficient ways to purchase cryptocurrencies using debit cards, converting your cryptocurrency back into traditional currency can often be a complex process. Platforms like LocalMonero or Bisq, despite providing enhanced privacy, frequently face challenges related to low liquidity. Here’s an illustrative guide to highlight the level of difficulty involved in completing an anonymous transaction via decentralized off-ramping alternatives like Paxful or LocalMonero:

1. Always access LocalMonero using a VPN or Tor.
2. Register using a disposable email like Protonmail or guerrilla mail. Avoid using your real email, address, or name.
3. Find a trustworthy seller/buyer on LocalMonero for a cash trade. Sellers/buyers with good feedback and high reputations are safer.
4. Use a public phone or a burner phone to coordinate the meeting.
5. Select a public meeting place where you have access to free public Wi-Fi.
6. Arrive at the venue, complete the transaction, and wait for 2-3 confirmations.
7. Avoid using your personal vehicle to commute, as your vehicle’s registration can reveal your identity.

It’s important to note that as of this moment, all of these methods are completely legal, yet unless you are a privacy geek or a low-ranking drug dealer, chances are that you will not go through this much of a hassle. The key message here is that, until a reliable solution for crypto-to-commodity trading becomes available, most major transactions will still involve centralized exchanges like Binance, whether we like it or not. The question that lingers is whether one can still off-ramp anonymously, and I believe it is possible.

First and foremost, take a look at my previous article, which highlights the necessity of creating a centralized exchange account without disclosing your personal information through Know Your Customer (KYC) procedures. Without this crucial step, the subsequent actions won’t have much meaning, as all transactions from the exchange to a business bank account will be linked to your personal ID documents.

Once you’ve laid the foundational framework, the next step is to either receive crypto payments anonymously or anonymize payments coming from centralized exchanges. A common mistake made by beginners is purchasing Monero on Binance and then sending it to someone else, believing the transaction is private. Spoiler alert- it’s not.

In my view, the simplest approach involves buying Bitcoin on a well-known exchange such as Binance, then moving it to a KYC-free exchange like TradeOgre, where you can exchange Bitcoin for Monero. Afterward, transfer the Monero to a cold storage wallet. From there, you can send it to your recipient’s exchange wallet, whether it’s Binance, Kucoin, or Kraken, and they can then convert it to traditional currency with maximum privacy, using their corporate account. This strategy is both straightforward and cost-effective when combined with Tor and a VPN. However, for those looking for even greater discretion, there are various methods to enhance anonymity.

One common option involves mixers and tumblers, which can be explained using a simple analogy. Imagine you have a plastic cup and a collection of pennies from both your wallet and your friend’s wallet. Now, pour all the pennies into the cup and give it a good swirl. Afterward, return to each person the same number of pennies they initially contributed. However, the individual coins they receive will likely be different from the ones they initially gave. This is precisely what crypto tumblers and mixers do, whether you’re dealing with Bitcoin, Ethereum, or stablecoins.

At the time of writing this article, all of the forthcoming methods mentioned are completely legal, even though Tornado Cash was shut down by the Treasury in August 2022. However, my concern with coin mixers, like Tornado Cash (TORN), is that the coins they process are “tainted.” In simpler terms, it’s still possible to trace that these coins have undergone mixing in a mixer. The blockchain’s inherent transparency, storing all transaction information on a public ledger, compromises the level of privacy. This is precisely what led to the freezing of USDC that had been processed through TORN. Exchanges meticulously examined the transaction history and refused to accept any USDC that had passed through the Tornado Cash Dapp. Circle, the company behind USDC, went even further by freezing USDC from blacklisted addresses associated with the app.

To address this issue with coin mixers, one potential solution is to introduce a delay in payments. However, it’s important to note that this method is effective primarily for cryptocurrencies that prioritize user privacy, such as Monero. The postponed payments feature allows users to delay the transfer of their anonymous coins for a specific duration, which can range from a few hours to several days, depending on the specific mixer used. The primary purpose of this delay is to significantly complicate the efforts of blockchain experts attempting to trace the origin and destination of these coins.

When a user opts for a mixer offering postponed payments, their coins are temporarily held in a pool for the designated delay period. During this time, the mixer can merge these coins with those from other users, creating a larger pool of anonymized coins. Once the delay period comes to an end, the mixer then distributes the mixed coins to their intended destinations.

By introducing this delay in coin transfers, mixers can effectively thwart blockchain analysts from tracking the path of these coins.

A more effective but somewhat expensive method is called chain hopping. The idea behind chain hopping is to add an extra layer of security to the mixing process by not relying on a single blockchain network. Instead, the mixing service uses multiple blockchain networks and hops from one network to another to blend the funds. This technique makes it challenging for anyone to trace the funds, even if they know the initial source of the cryptocurrency.

In layman terms, imagine you’re driving a car on a highway with multiple exits, switching from one highway to another and changing your vehicle’s appearance along the way, say at a parking lot.

First, you pull over to a parking lot (a different wallet) on the same highway, where you exchange your unique car (convert your cryptocurrency) for a new one (a different cryptocurrency). Then, you re-enter the highway, but now you’re driving an entirely different car (using a different blockchain network). This new car is unrecognizable compared to your original one.

Now, even if someone had spotted your initial car and noted its details, they won’t be able to follow you on this new highway because you’re driving an entirely different vehicle. In a real-world scenario, exiting the highway with a new car would be challenging due to toll booths recording your entry and exit. However, crypto cross-bridges have addressed this issue, allowing your “new car” to smoothly transition to a different road. Chain hopping makes it exceedingly challenging for anyone to track your journey from start to finish, just like taking different highways and switching cars along the way would make it nearly impossible for someone to follow you throughout your trip.

The final method I’d like to share is “peel chains” or payment splitting. This technique breaks down a large transaction into smaller ones sent to different addresses to make it more challenging for anyone to trace the funds’ origin and destination.

To explain payment splitting, think of it as someone sending a secret message in World War Two through multiple postcards. Imagine you have an important message (representing a large transaction) that you want to send to the Resistance without anyone knowing the full content or its destination. Instead of writing the entire message in one letter, you break it into smaller parts and send each part on a separate postcard.

For instance, if you had a 10-part message, you would send each part on a different postcard to various addresses (similar to how a mixer splits a transaction into multiple smaller transactions sent to different addresses). This approach makes it much tougher for anyone to piece together the full message or track its route.

The advantage of payment splitting is that it adds an extra layer of security and privacy. Even if someone were to intercept one postcard (or one transaction), they would only have a fragment of the complete message (or payment), making it nearly impossible to figure out the entire story or where the remaining parts went. The downside is the cost, as you must pay a “stamp fee” (transaction fee) for each postcard sent.

For the time being, Monero (XMR) stands as the top choice for cryptocurrency trading. It eliminates the need for relying on chain hopping or mixers to anonymize crypto transactions. Unlike many other tokens, its value comes from its practical use rather than mere speculation. However, in the long run, the possibility of a government ban on Monero looms, with the IRS offering a substantial reward of $625,000 for breaking XMR’s code. If all centralized exchanges are compelled to remove it, using Monero will become more burdensome and costly.

In conclusion, the cryptocurrency landscape is in constant flux, demanding more advanced methods in the future. My primary concern regarding the techniques I’ve outlined is their dependence on centralized exchanges. Should a bottleneck emerge in exchanges like Binance, Kraken, or Kucoin, entering and exiting the cryptocurrency realm will necessitate fresh approaches. This is why the community’s long-term strategy involves developing an off-ramping solution involving commodities, tangible goods, or service trading.

For more information on wealth management strategies and actually implementing them, feel free to reach out via email at info@onlineresetadvisors.com.

Recent saturation of the entire news media with border crises, such as the Israel-Gaza war, the influx of Hispanic migrants into America, and the European migrant crisis, has drawn public attention. Border patrol agents cutting razor wire to allow migrants to enter sounds like a bad comedy. People are actively taking sides, whether they support “pro-Israel” or “pro-Hamas,” “open-borders” or ” kick out the migrants.” It almost seems like the Hegelian dialectic at play… a problem, which riles up a reaction, followed by a cure “to save the day”.

So, what will that “treatment” be?

Not long ago, I came across two informative videos by James Corbett and Truthstream Media. They delve into great detail to elucidate how the ongoing border situation is being manipulated to promote the concept of a biosecurity state, albeit with a different approach. This scheme is tailored for those who resisted the imposition of unconstitutional health certificates during the COVID pandemic; now, they are the ones who might find themselves advocating for a biometric ID to facilitate cross-border movements.

Joe Biden, who based his campaign on the promise of no additional border wall construction during his administration, has suddenly granted waivers for 26 federal laws in South Texas, allowing for the erection of approximately 20 miles of supplementary border wall. This has been made possible by utilizing funds from Trump’s executive order, which was originally intended for his “travel ban.”

Buried within the details of Trump’s well-known Executive Order titled “Protecting the Nation from Foreign Terrorist Entry into the United States” (Section 8) is a provision for the implementation of a biometric entry-exit tracking system, affecting all individuals entering and leaving the United States. This despotic desire to implement a biosecurity border protection system goes all the way back to Trump’s golfing buddy President Clinton, who in 1996 signed the Illegal Immigration Reform and Immigrant Responsibility Act into law, which mandated the inclusion of a biometric identifier at the country’s borders.

This development coincides with a recent announcement from the European Union, stating that starting in January 2024, American citizens visiting the European Union will face the same intrusive biosecurity checkpoints they had imposed on foreign visitors at their own borders. Amidst the plethora of orchestrated border crises, ongoing conflicts, and media distractions, the WHO Pandemic Treaty has quietly emerged, set to usher in a global digital health certificate.

If the average person fails to recognize the significant concerns and consequences associated with such a system, which we appear to be sleepwalking into, then I shall offer guidance to those who wish to take action.

As my favorite saying goes: what is the solution?

To begin, there is no single solution, but rather a comprehensive approach that revolves around one key principle: the willingness to adapt and relocate.

Just as Eastern European migrants who left their homelands before the Soviets arrived in 1944 were spared five decades of oppression, individuals today can choose to move to safer, less oppressive regions, although these places are likely to be outside the developed world. If you’re one of the patriots who wishes to stand firm in your homeland, then more power to you. This article is geared towards those who are willing to seek out places that offer them the most favorable treatment.

From both a geopolitical and historical standpoint, Latin America emerges as an optimal destination. Over the past century, not a single world war has unfolded in this region. In World War II, for instance, Brazil stands as the only South American nation on the list of casualties, with a total of 2,000. While domestic conflicts and coups have occurred and continue in the continent, such as Colombia’s 60-year civil war that started in 1964, you may not hear much about them when wandering the streets of cities like Medellin or Bogota, except perhaps through the radio during a taxi ride.

Take Mexico, for example. It has been entangled in a drug war since 2006 and ranks high on standard corruption scales. Many residents in major cities like Mexico City and Guadalajara can attest that COVID lockdowns were enforced. Yet, during my three-month stay in San Cristobal de las Casas, a colonial town in the southern border state of Chiapas, I found that the Tzotzil population continued with their daily lives, lockdowns or not. Given that a significant portion of their population participates in the “informal economy”, government stimulus wasn’t even offered. Chiapas was labeled a high-risk state for COVID infections by the central government. However, once officials in Mexico City realized that restaurants, grocery stores, industries, and tourism didn’t follow their shutdown orders, they promptly changed their assessment to “safe.”

In essence, two pivotal factors define Ibero- America: strong community bonds and a relaxed approach to rule enforcement.

Many local police officers genuinely desire to know their neighbors and build relationships with them, rather than displaying a Napoleonic complex. As an anecdote, I even engaged in calisthenics workouts with a local police officer during my stay in Chiapas, and he was eager to assist my family and me. Such an attitude is seldom found in Europe or the United States. A good tip for any place is to always know your local “copper”.

Undoubtedly, there are numerous law enforcement officials in Central & South America who view their role as an opportunity for extortion and accepting bribes. In response, one might argue that at least down there the average person can afford the corruption. Don’t tell me that politicians in first-world nations, like maskless Gavin Newsom or Neil Ferguson, breaking his own lockdown rules to meet his lover, have nothing to do with corrupt practices and knowing the right people. It’s simply a cost difference. Instead of shelling out thousands in kickbacks, the unscrupulous Latin American officers engage in similar activities for significantly less.

In Hispanic countries, rules are often regarded more as “suggestions,” and even when they are strictly enforced, there are typically ways to find alternatives. If you’re concerned about strict lockdowns, not only in the Southern Hemisphere but in any city, consider this pragmatic approach: open up a micro-business in photography. As a photographer, your job consists of going around and taking pictures… of whatever chosen by you or your “clients”, be it a bus stop, local park trees, or downtown buildings. As long as you’re carrying around a camera, you can justify your presence to authorities and go about your activities. This tactic, which worked during the COVID pandemic in France, can prove effective in Latin America and other developed nations as well.

One notable advantage of The Americas is their rich ethnic diversity. When choosing a new place to live, it’s wise to select a country where your appearance allows you to blend in with the locals, providing that you follow the dress code and local mannerisms. While in public, as long as you don’t speak with an accent in the local language, natives won’t easily recognize you as an outsider. While this might touch on the sensitive issue of skin color, it’s an essential point to consider.

Regardless of your ethnicity—whether you’re white, black, brown, Asian, or Arabic—moving to developing countries often leads to the assumption that you’re wealthy. Being perceived as a well-off foreigner can attract unwanted attention, potentially leading to issues like robbery, theft, or extortion.

While this is an unfortunate reality, you can easily reduce your risk by avoiding standing out to unscrupulous individuals. For instance, if you’re white, you may stand out more in Bolivia but blend in better in countries like Argentina, Uruguay, Chile, or Brazil. There’s a historical reason why Nazi ratlines chose these locations during World War II. Arabic individuals might find Mexico, Colombia, or Ecuador more suitable, given the prevalence of darker skin complexions in these countries. People of African descent might feel more at home in regions with a significant Afro-Latino population. Southeast Asian individuals often share similarities with indigenous populations, making Mexico, Peru, and Ecuador appealing choices.

Lastly, Central & South American economies can be summarized as follows: cash is king. Many of these countries have some of the highest rates of unbanked populations globally. For example, as of 2021, 54% of Colombians, 57% of Peruvians, and 63% of Mexicans lacked a bank account. While countries like China, Russia, and the European Union explore Central Bank Digital Currencies (CBDCs), Ibero-America still predominantly relies on paper currency and coins. Although Latin America may adopt CBDCs in the future, it contradicts their culture of navigating rules and regulations and will be difficult to implement.

Now, let’s address the main pushback on everyone’s mind: how can one navigate visa restrictions to stay in these places?

For those with more financial resources, this is easier to mitigate. One avenue to consider is acquiring a second passport, or delving into residency programs that may ultimately lead to citizenship. For instance, in Panama, a $300,000 investment in real estate can grant you permanent residency in just about a month, with the sole requirement being a visit to the country every two years. Similarly, Mexico offers permanent residency to anyone who can demonstrate a savings bank balance of $220,000 over the past 12 months.

But what about average middle-class professionals?

The good news is that there are options available, but they require more effort. Paraguay, for example, offers free temporary residency that can be extended to permanent residency after two years, though it does involve several trips to the country. The government technically allows dual citizenship for Spanish and Italian citizens, but note that it requires at least three trips to the country to be eligible for citizenship, so it’s not exactly a “free” option. Other countries like Costa Rica provide temporary residency with proof of a $2,500 monthly salary for the past year, and permanent residency can be obtained after five years. You can technically obtain a passport after seven years, provided you stay in the country for more than 183 days each of those seven years.

There are other, more complex strategies one can use for free, such as continuously moving from one country to another every six months, spending six months in Peru and then six months in Ecuador, for example. If you enter Colombia in July, you can legally stay in the country for an entire year. However, these approaches require a highly flexible lifestyle and can still consume both time and money. For a smoother experience, I would actually recommend considering digital nomad visa options, which are available in many Latin countries.

Personally, the most appealing option for obtaining residency without having to invest hundreds of thousands of dollars is Ecuador’s investor visa program, which currently requires a minimum investment of $31,500, including real estate. It’s important to note that in the Latin American property market, most transactions are completed with upfront cash payments. Few people opt for loans or mortgages to buy houses due to high interest rates, which is one of the reasons property bubbles, so common in Europe or the United States, are less prevalent in Latin countries.

For the amount mentioned, it’s quite feasible to find a “finca” (a farm in Spanish) where you can grow your own food and lead a life away from the bustling cities. After all, one of the key aspects of escaping the biosecurity state is achieving self-sufficiency. What’s noteworthy is that you don’t even need to remain in the country after making the investment to secure permanent residency in three years, and you can apply for citizenship after four.

In conclusion, it’s crucial to remember that there’s usually a well-known solution to every human problem. While many European, Asian, and American countries appear to be veering towards more restrictive governance, certain countries worldwide, once under the yoke of strict dictatorships, have propelled their populations to a point where they’ve developed a heightened awareness of the perils of government overreach. The prior communist administrations and military juntas in these nations have contributed to fostering this awareness.

It doesn’t mean that the aforementioned programs and strategies will work forever. The key takeaway from this article is that developed nations are likely to increase their control over their populations, and establishing a community bank or engaging in “cash days” won’t address the underlying monetary reset issue. Instead of resisting the current trends, consider whether you and your loved ones might be better off living in a culture that isn’t overly regulated, values community and family time, and has abundant food production and water sources.

For a deeper consultation on wealth management strategies and actually implementing them, feel free to reach out via email at info@onlineresetadvisors.com.