Trying to scale on L2 when you have crippled the L1 is useless. Bitcoin would need to first scale on it's L1 as far as it can, before it starts pushing further scaling into L2s. All L2s today compromise on the decentralization.
Privacy on BTC is extremely hard to do well and it's very costly. Monero in comparison makes it accessible and cheap for every person, even non-techy people.
And without privacy Bitcoin is not fungible.
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I appreciate your perspective on L1 scaling; a layered approach was always intended to safeguard L1 decentralisation under load. You're quite right that base-layer privacy on Bitcoin is challenging and costly, and robust privacy is indeed critical for true fungibility, a point Monero addresses uniquely.