But wouldn't this affect very negatively the whole community, not only normies? The only "safe" way to "have" #btc would be via an #etf, since your name\ip\whatever is never linked to a specific #utxo that is going to be used in the future in some illegal stuff, no? I find it scary that the initial idea I put forward could be used by the government so every bitcoiner just gives up in fear of incarceration for a crime someone else commited. I feel this is one of the biggest risks in bitcoin. Don't you? Why?
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If you are scared then only sell to an exchange, but self custody in the mean time. The brave individuals will sell their coin p2p, and good for them.
You do not need to sell it. Just use a utxo to buy a soda in El Salvador and after 10 transactions someone uses it to commit a crime. They go back in the transactions and your name is the only one that comes up because you used a KYC exchange to buy #btc... Next thing you know you are in a cell somewhere. Possible scenario?