Тег: Bitcoin

The “Rich Pauper” Strategy: How to Cheat the State and Preserve Capital

Imagine two guys. The first drives a shiny Ferrari, wears a Brioni suit, and posts photos of oysters on Instagram. He has a mountain of debt, insomnia, and breaks into a cold sweat every time a letter from the tax office arrives. The second takes the subway in an inconspicuous logo-less hoodie, eats shawarma on the corner, and sighs during a conversation with a neighbor about how utilities have gone up again. But in his head is a seed phrase for a wallet containing hundreds of bitcoins. Which one of them is truly free? For any self-respecting agorist, the answer is obvious.

We are living in an era where the state has turned into a giant Tyrannosaurus Rex. And as we remember from “Jurassic Park,” a T-Rex’s vision is based on movement. In our reality, it is based on showing off. If you want to live freely, build your capital, and avoid attracting the attention of “comrade major,” the tax inspectorate, or simply criminal elements, you need to master the greatest art of the 21st century: being a “poor” rich person.

First and foremost, you should rent everything rather than owning it. Do you know what buying a luxury home or car in your own name is? It’s voluntarily pinning a huge target to your back that says: “I’m here! Milk me!”. It is the ideal asset for confiscation, seizure, or exorbitant taxes. Rent your housing and transport. Ideally, not even in your own name, but through trusted representatives, cooperatives, or anonymous companies, if the scale allows. You can live in a penthouse and drive a Bentley, but on paper, you are just a passerby.

It is also important to give up luxury: Rolexes, Birkin bags, Gucci belts—these are taxes on insecurity. In agorism, your clothing is camouflage. Dress neatly, but in a way that makes you impossible to remember. Steve Jobs and Mark Zuckerberg didn’t popularize basic t-shirts for no reason. When you have no labels, people (and officials) cannot “appraise” you. You blend into the crowd.

Of course, you must not talk about your assets! Friends will start asking for loans (and get offended if you refuse). Acquaintances might accidentally blurt out about your wealth in a bar where the wrong person is sitting. Money loves silence, and crypto loves graveyard silence. To everyone, you should be that guy who “does something on the internet, seems to have enough for food.”

It would be a good idea to learn how to professionally play poor. In our society, successful people are envied, while the poor are pitied and left alone. Complain about inflation, sigh when paying a bill at a cafe, always ask for discounts and promo codes, and haggle at markets. It’s not about the 5 dollars saved—it’s about creating an alibi. When you constantly demonstrate that you are counting pennies, no one will even think that you can be “de-kulakized.”

Another tip: delete Instagram to hell, or at least stop posting photos from business class. Social networks are an open database for tax collectors and scammers. Your profile should look as if you spend your vacation at your grandmother’s cottage, not in the Maldives.

Furthermore, invest your money in things that cannot be taken away. Instead of gold chains, invest in your health (best medicine, quality but simple food, biohacking) and in knowledge. And foreign passports and residency permits (which, of course, you will tell no one about) are the best insurance, invisible to neighbors.

And finally, use cash and P2P. If you pay for everything with a named bank card, your consumption profile is visible as clear as day. Pay for daily expenses in cash wherever possible, as paper money leaves no logs.

In conclusion, it should be said that agorism is not just a philosophy of the free market, but a daily spy game. The stationary bandit wants you to be transparent, predictable, and tied to a place. But you can live in such a way that you will only smile, watching the system try to grab you by the throat, while its fingers grasp emptiness. Because for the system, you simply will not exist; you will be a ghost. A very wealthy, free, and invulnerable ghost.

Voluntarist, Bitarch

Showed crypto – lost crypto: why silence became new gold

Remember the old wisdom about money and happiness? Something like, “It’s not about the money that makes you happy, but it’s better to cry in a Lamborghini.” So, in the age of cryptocurrencies, a new truth has emerged: It’s better to quietly rejoice in your bitcoins than loudly lament their loss.

Canada, 2022, protests by truckers against COVID restrictions. The Trudeau government makes a horse-shaped move – freezing not only bank accounts but also the crypto wallets of protesting activists. Yes, yes, those “uncontrolled by the state” bitcoins suddenly turned out to be quite controllable. How? Elementary – naive users stored their crypto on exchange wallets, and authorities simply ordered the exchanges: “Shut it down for hell’s sake!” The court later recognized these actions as illegal. But the residue, as they say, remained.

If a stationary bandit knows about your crypto assets, he’ll find a way to get to them. Today it’s “combating extremism,” tomorrow it’s “mobilizing resources to overcome the crisis,” and after that – simply “because we can.” History teaches us one thing – when the state needs money, it finds it. In 1933, Roosevelt seized gold from Americans – literally forcing them to hand it over under threat of 10 years in prison. They handed it over for $20 an ounce, and then the government immediately raised the price to $35. A classic!

But the state is still half the battle. The real hell begins when your crypto millions are discovered not by the right people, let alone psychopaths with a dysfunctional mechanism of inhibition of violence. France, 2025, bandits kidnap the family of a crypto entrepreneur. The demands are simple: “Transfer the bitcoins or we’ll cut off your fingers.” And they do it! This is not an isolated case – dozens of kidnappings of crypto investors are being recorded around the world. Why? Because cryptocurrency is the ideal prey for a 21st-century robber. You don’t have to bother with heavy safes or washing marked bills. Point a gun at someone’s head, get the private key, and take millions. Fast, clean, and irreversible.

You can say: “But I am an honest person, I go through KYC on exchanges, they won’t be able to steal anything from me.” Only remember the Ledger data leak in 2020? 272 thousand addresses of buyers of hardware wallets leaked into the network. And what started! Letters with threats: “We know where you live and that you have crypto. Pay or…” A fresh example – Coinbase, May 2025, was hacked, 70 thousand clients’ data were stolen. Names, addresses, account balances. A ready list of victims, can be said, “from start to finish”. KYC is like stripping naked in front of a stranger and hoping he’s a decent person. But there are many strangers: the exchange itself, its employees (who may be bribed), hackers (who may hack), the state (which may request).

What to do? Be silent! Libertarian wisdom is simple: my money is not your business! Don’t brag about successful trades on social media. Don’t tell people at parties how you bought Bitcoin for $100. Don’t even hint that you have crypto. Use different addresses. Separate “official” coins (for tax purposes) and “ghostly” ones (for the soul). Study private keys and mixers – yes, authorities don’t like them, but it’s your right to financial privacy. And under no circumstances keep large sums on exchange wallets.

Remember: in a world where information is power, your silence is your freedom. Cryptocurrency was born as a tool of freedom, and you shouldn’t allow it to turn into another instrument of control. As Senator Ted Cruz aptly noted: “Small authoritarianists around the world hate Bitcoin because they can’t control it.” But they can very well control *you* if they find out about your bitcoins. Fortunately, as long as you don’t decide to spill the beans, no one knows which specific address belongs to you, and you are safe. So, the next time you want to brag about your crypto portfolio, remember an old partisan wisdom: “A chatterbox is a gift to a spy!” Only there are many spies, and each has their own plans for your money!

Voluntarist, Bitarch

Translation of an article about tulip mania

There is a new commissioned translation on the site, the article “Tulipmania: The classic story of the Dutch financial bubble is largely false“. It is 2018, the Bitcoin bear cycle, and there are once again talks that all this crypto of yours is just a new version of tulipmania; so, the article, without mentioning Bitcoin a single word, instead explains that everything with the tulips was not at all like it is in popular economic anecdotes.

How the state’s imposition of AML/KYC encourages fraud

One of the requirements from the state is the identification of individuals participating in financial transactions and the sources of their funds. KYC (Know Your Customer) and AML (Anti-Money Laundering, consisting of transaction history analysis) procedures are explicitly stated in the laws of many countries. Usually, when someone wants to exchange cryptocurrency through a “white” exchanger or exchange platform, their transaction is checked by AML tools and, if it is assessed as high-risk, the client is required to undergo KYC—provide their passport details and information about the source of funds. All this is justified as a fight against various crimes, fraud, and even terrorism. However, as we will now see, such procedures can, on the contrary, encourage fraudulent activity.

One of the fraudulent schemes directly linked to AML/KYC is revealed by the creator of the cryptocurrency exchange monitor antiswap.info. When someone wants to perform a crypto exchange, exchangers conduct an AML check of the transaction via third-party services. But the methods used by such services raise doubts. For example, you yourself may not be involved in criminal activity in any way, but if the coins you currently hold were involved in it a dozen transactions ago, they will already be considered “dirty,” and you will have to deanonymize yourself and somehow prove the legality of the origin of the funds.

One of the users of the kurs.expert monitor points to cases where people were simply withdrawing funds from closing exchanges, and these were flagged by AML verification services as stolen. The essence of AML checks was also well described by one of the commenters on the miningclub.info forum: “I sold a bicycle to Vasya and bought a car from Masha. A year later, it turned out that Vasya was dealing drugs and making drops while riding the bike he bought from me with drug dealers’ money. It turns out I am an accomplice and Masha is the owner of ‘dirty’ money. Consequently, will her account be blocked, as well as the cash register of the store where she bought sausage yesterday?”. Furthermore, many commenters there point out that AML verification services may assign a transaction risk without any basis at all, since no one checks how they conduct this procedure.

Naturally, if you fail the AML check and the exchanger does not like your arguments during KYC (or if you simply do not wish to deanonymize yourself), your funds may simply be stolen, or you may be charged a huge commission for their return. As the creator of Antiswap writes, a third of the exchangers listed on the popular Bestchange monitor were caught doing this. But why then do almost all exchangers there have a perfect rating? The reason is that Bestchange considers the seizure of coins due to failure to pass AML/KYC to be solely the client’s fault, and all complaints regarding this are moved from negative reviews to neutral ones, which do not affect the exchangers’ rating.

At the same time, you are unlikely to go to state authorities to complain about such exchangers, as they will likely also have questions regarding the origin of your funds, and thus you may only create new problems for yourself and recover nothing. Thus, exchangers with dishonest owners and employees can practically legally engage in theft and fraud.

The website antiswap.info contains a list of such fraudulent exchangers, as well as a list of those who can be trusted. Of course, among the trusted exchangers, very few openly state their readiness to conduct exchanges without forcing the user to undergo AML/KYC, because many are still afraid of repression from the stationary bandit and publicly report their compliance with its requirements, even if they actually perform no checks. This creates difficulties in finding exchangers that are truly ready to conduct anonymous transactions. However, it is still important to separate blatantly fraudulent exchangers from those who can be trusted with high probability.

Voluntarist, Bitarch

Bitcoiners discuss Montelibero, continued

A month ago, the guys from the projects HypeCoinNews and Bitcorn tried to launch a joint podcast Bitcom in Bitcoin, inviting Soz for the first episode to tell them about Montelibero. There was a false start, and they had to discuss Montelibero among themselves. I later commented on one of the takes from this conversation on my page.

And so yesterday, they finally released the recording of the conversation with Soz.

I was briefly reprimanded for the inaccuracy of my comment: by freezing BTC in the Liquid sidechain, I receive LBTC coins in exchange, which I can then use to buy LMTL tokens or any others, and the fund, after selling me its tokens, is free to dispose of the received LBTC as it sees fit, including selling them for euros. But since the liquidity of this market is extremely low, the comment remains essentially valid: using this mechanism to accumulate resources offline is inconvenient.

And then the conversation continued for over an hour about other things (if anyone is ready to make timecodes, it would be very helpful—drop them in the comments). I listened and felt envious: I have to give a talk about Montelibero at the upcoming festival, and it certainly won’t be better than Soz’s, no matter how hard I try(

I’ll probably add one more thing to what Soz said about “broke people.” In principle, a broke person just needs to arrive in the country and start earning; they can completely ignore legalization. The culture of under-the-table payments is extremely developed here. Documents aren’t demanded at every step (and if they ask once every six months, there are no sanctions for saying your documents are at home). Difficulties only arise when trying to leave the country. But if you’re broke, why would you be traveling abroad! Stay in Montenegro, enjoy its—no joke—immense natural and cultural diversity, participate in the activities of the local community, and just don’t worry. Roma people make up five percent of the population here; learn from them the correct attitude toward the state (though it’s better to learn the attitude toward private property from us).

Montellibero’s criticism from bitcoiners

A podcast was released on the Hype Coin News channel, for which two bitcoiners wanted to invite our Soz from Montelibero to tell them about Montelibero. However, the guys failed to account for the Montenegrin polako — Soz was late, and the entire podcast took place without him. As a result, it became a conversation between a person who knows something about Montelibero and a person who knows nothing but is trying to understand.

The main question that concerned the interlocutors for most of the podcast was “why are they using some shitcoin, what’s it called, Stellar, when there is a normal, orthodox Bitcoin?”

I have two answers to this question.

The first is usability. For instance, I cannot provide a link to a post from the Hype Coin News channel, nor to the channel itself, because it is private. As for how to subscribe to it — God knows; I subscribed somehow a long time ago and no longer remember how (which is why I am simply posting the podcast right here). It is roughly the same situation with attempts to operate tokens on the Liquid Bitcoin sidechain. Yes, the MTL fund has a Bitcoin sub-fund there, but all I managed to do there was buy L-MTL tokens with Bitcoin and occasionally nudge the head Bitcoin guru manually so that he would manually transfer the dividends to my Lightning wallet. This is not a full-fledged tokenomics, but rather a reservation for Bitcoin maximalists.

But if one sets a goal, it is possible to write a custom wallet (such an attempt is discussed in the podcast) with decent usability, and the first answer would become irrelevant. So, I have prepared a second, more fundamental answer.

What do our bitcoiners see as the main advantage of Bitcoin as a platform for tokenomics? That by issuing tokens, you provably freeze Bitcoins as collateral. But if an investment fund freezes all receipts, it turns out that it is investing in Bitcoin, and only in Bitcoin. However, the MTL fund needs to invest money into one business or another. Thus, its tokens will ultimately be backed not by the original carrier of value transferred to the fund, but by obligations. It doesn’t matter what entered the system. Some bought MTL tokens with Bitcoin, some with rubles, some even with the god-forsaken Lumens. Most of these funds were then converted into euros, and those euros were used for purchases on the external market. And entries appeared on the fund’s balance sheet regarding which assets it acquired. More precisely — tokens of the assets acquired by the fund. The fund does not have a single euro — neither in bank accounts nor in cash — because such entities cannot be put into a blockchain. Instead, it has tokenized euros (which the fund’s treasurers are obliged to exchange for cash upon first request, and these are specific people, and as many as needed can be brought in). Plus tokenized businesses that bring dividends. Plus tokenized investments that one hopes will increase in price — for example, land or Bitcoin itself.

If we used tokenomics based on a Bitcoin sidechain, it would be absurd. I freeze my Bitcoin in the sidechain and receive an MTL token. Then, for the fund to invest the funds, it would need to find someone who will accept this Bitcoin frozen in the sidechain and give euros for it. And where can you find such a person?

It is clear that bitcoiners would like to see something like the Bitcoin Beach project, where there is a large local economy, and everyone within this economy keeps records and makes settlements in Bitcoin. Need land — buy it with Bitcoin. Need a tractor — buy it with Bitcoin. Need to pay taxes to the damn state — pay with Bitcoin.

Yes, in such a world, tokenomics could be based on Bitcoin. What stopped us from doing something similar? Nothing, it is simply a completely parallel task. When the Bitcoin Beach franchise comes to Montenegro, we will be able to fit into it. But for now, it is more convenient for us to use another solution, one that is cheaper and simpler.

Tokenomics is perpendicular to Bitcoin. Bitcoin is about the ability to store and transfer value without trust. Tokenomics is about the ability to monetize trust. One does not hinder the other.

As a dessert, I suggest refreshing your memory with a couple of my texts on tokenomics: part 1, part 2.

An example of a truly libertarian reaction to state lawlessness

Not long ago, I told you about a major international terror attack carried out by the authorities of several countries against a small crypto exchange, Bitzlato. It seemed that everything in this story was already clear: the company was crushed, and the depositors’ money was lost.

However, the exchange team decided to preserve the service. Since the servers were seized and the bot’s code was compromised, they are currently rewriting the code; starting March 1, they promise to organize the possibility for every user to withdraw half of their deposit, and later gradually provide full access to the remaining funds.

I like the fighting spirit in the news published by the project team. No “bleh, meh, we are not to blame, force majeure, there’s nothing to be done, bye-bye.” Instead, the seize-ers are clearly called seize-ers, and they are almost openly sent away in the manner of the Russian warship—remember that ancient meme?

Yes, using centralized services is dangerous, but completely avoiding trust in certain intermediaries is a very costly endeavor. And that is why I especially value those centralized services that have, in one way or another, passed the “test of character.” Not every company can manage this. For instance, the Bitfinex exchange managed to reimburse depositors for losses from a major hack in its time, while the btc-e exchange could not survive a raid by bandits in uniform. I very much hope that the Bitzlato service will pass its test of character.

#freeLegkodymov

Yesterday, security forces from the USA, France, Spain, Portugal, and Cyprus carried out a loud act of terror, destroying Bitzlato, a bitcoin-to-ruble exchange service that had been operating successfully since 2016 (the turnover of other crypto and fiat constituted a very modest part of the total turnover), and arresting its founder, Anatoly Legkodymov. These terrorists issued a boastful press release, promising to continue pursuing the cryptocurrency business worldwide, regardless of the formal boundaries of jurisdictions.

Anatoly is accused of neglecting the state-imposed identity verification of users, collaborating with darknet markets, and performing other actions that are completely legitimate for any libertarian, while consistently satisfying his clients. In other words, he was arrested for making our lives better. Now he faces five years of imprisonment, and, of course, his business will be destroyed, and our money, which was kept in the company’s wallets for operational needs, will be seized by the state.

I had to say goodbye to a certain amount of bitcoin, as well as remove all recommendations for using the destroyed service from my website. I hope the next generation of crypto exchangers will already be using Lightning, and there will be no question of storing funds in third-party accounts. For now, the most reliable way to exchange cryptocurrency for fiat was and remains exchange through trusted acquaintances.

The well-known statist Leonid Volkov, in his channel, approves of the actions of the American authorities, after which he finally ceases to exist as a personality and begins to exist as a faggot. His beloved Navalny, whom he so touchingly demands be released, personally went to surrender to the Russian authorities, ignoring the shouts of “don’t go in – it’ll kill you.” At the time, the man diligently distanced himself from the USA, indulging the whims of the local legislation as much as possible—but he had the imprudence to physically appear on the territory of this terrorist state, for which he paid the price.

What do I propose?

First, of course, no donations to the FBK—they are our enemies, even if they stand against Putin. Unsubscribe and ignore.

Second, if possible, avoid the USA (I realize this sounds something like “do not overindulge in black caviar”).

Third, we see that storing money in centralized services is fraught not only with scams from these very services, but, on the contrary, with the confiscation of your money by the state, if these services do their job truly well. So, no matter how attractive online wallets on various exchanges may be, let’s maintain hygiene and keep money only under our own direct control.

I am not well-versed in the intricacies of legal squabbles, so I will not undertake to call for any actions in this field in attempts to recover my pennies. But I hope that everyone who approves of this act of terror will thereby ruin their reputation in the eyes of the widest possible circle of people, and preferably specifically those they depend on.

StandardSats

A small IT conference took place at the Montelibero club on June 25. I suggest those interested watch the recording of the most interesting presentation – Anton Gusha talked about how the Lightning Network works and what interesting tools can be built on its basis.

Specifically, he created a startup called StandardSats, which allows anyone to download a specialized Lightning wallet application where the balance in satoshis is floating and pegged to the exchange rate of a particular asset. For example, here in Montenegro, we use the Euro rate as a peg, and thus we can settle payments between each other in fiat without having to convert Bitcoin to Euros first.

I wanted to write about this in the third part of the series on Montelibero tokenomics, but while I was pondering how to present it, the project author came to Montenegro himself and gave a presentation, making my task easier.

Learning to understand decentralized systems

Voluntarist, Bitarch

One of the mistakes often made regarding the concepts of certain systems is the inability to understand their decentralized nature. I will give an example of an absurd, yet still frequently encountered question about cryptocurrencies: what happens if the “owner” of Bitcoin decides to create as many new coins as they want or otherwise change its system? Here, there is a clear inability to understand how a currency can not have an owner. The traditional understanding of currency always assumes the existence of a specific issuer who releases new monetary units and possesses the exclusive right to do so. And many truly cannot imagine how it could be otherwise.

The example of Bitcoin is telling, as it is already a functioning system without a centralized governing body. In its case, there is no issuer; no one can unilaterally make any decisions regarding the operation of its system without the direct consent of holders of more than 50% of the computing power involved in it. Each such holder (miner) possesses their own copy of a network node, and each such copy is identical. This is precisely what decentralization consists of—there is no central node. Once launched by its creator, such a system, upon involving a sufficient amount of computing power, never again passes into unilateral control.

Even greater decentralization is given to the entire cryptocurrency system by the fact that anyone who wishes can attempt to launch a new cryptocurrency with their own operating principles. There is no such rule (nor the possibility of implementing one) that only one specific cryptocurrency exists and is used on the internet (as is most often the case with ordinary currencies within the territories of states). There can be as many as people themselves decide to use for various purposes.

If a currency can be decentralized, then why can other systems not be as well, for example, a system of public governance? Its traditional understanding is that in a certain territory there must exist one single body (the state) possessing the “legitimate” right to impose a single order on everyone, if necessary resorting to the threat of violence. But do you think it would not be just as much of a mistake to consider this option the only one possible, as it is a mistake to consider the existence of currencies possible only in the presence of specific issuers?

It would be a great folly to dismiss the possibility of achieving a free, non-violent society in which different, freely choosable systems of public order exist in parallel, simply due to a fundamental unwillingness to understand and accept the possibility of the existence of decentralized systems in principle. Those who still continue to think in a purely “centralized” way, where every system must have some single center of control, should finally learn to understand the possibility of the decentralization of various systems.