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would a withdraw to pegged-in liquid btc add a privacy buffer?
281 sats \ 3 comments \ @stack_harder 17 Oct 2024 bitcoin
ok so i say a video today from btc sessions showing how to withdraw on-chain to a direct pegged-in liquid btc address in aqua wallet, then flip to lightning or on-chain etc
(here it is on nostr) https://primal.net/e/note1axyl4lyqvj5k6yp8ylthve7wex3kr5ldl8vhyuujkdp5v80htlcsrjkjxp
so my question, would doing something like this also add an extra privacy layer? or is it more just something that is handy during fee spikes for anyone that can't withdraw to lightning?
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32 sats \ 2 replies \ @OT 17 Oct 2024
There might be some slight privacy gains.
The exchange (if you're doing this same example) might flag the peg in, but it will be consolidated into the liquid federations address. Then on the liquid chain there will be your address.
So someone looking would likely know that one of these liquid TX is yours. They won't be able to tell which one because the amounts are hidden, but because there are so few people using liquid it shouldn't be too difficult to tell.
IMO, this is a bad example by BTC sessions. If fees spike and you need to send it from the exchange, they will either pass the cost on to you or stop BTC withdrawals.
Better to use an exchange that has lightning, or even better lightning P2P.
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0 sats \ 1 reply \ @stack_harder OP 17 Oct 2024
that makes sense, i imagine with smaller amounts or with more users of liquid it would be decent, not as decent as, say, robosats tho or another pure p2p service`
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0 sats \ 0 replies \ @OT 17 Oct 2024
When onchain fees spike, liquid gets more people using it's but still not many in the whole scheme of things.
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