KYC can be as risky as not having self-custody (custodial wallet, cashu, Fedi, liquid, etc)
If they know how much you own and want some of it, they can use all the state power against you, the same way they do it with taxes today.
Saying Bitcoinβs power lies in its software is like saying the Constitutionβs power lies in the ink that stains its paper.
It's always people beliefs that make it real.
Would you sign this contract?
Year 2034
BTC = 25 Million dollars
but...
51%+ hashrate compliant to fiat regulation
100% transactions via KYC
undeclared utxos get blocked by default
20% yearly penalty if you don't declare your utxos to your government
11% annual tax on your BTC holdings
8% if your custody is on a regulated exchange that does the paperwork for you.
My dream: wearing Bitcoin swag becomes so popular and normalized that we can blend in with regular people, instead of hiding ourselves.
Shared risk principle.