The fact that single individuals COULD get privacy doesn't address my point.
Are you familiar with Chainanalysis? Roman Sterlingov? Samourai and TDev?
Sending txs from a particular address (ie with a particular private key) ABSOLUTELY identify the sender if those utxos are KYCed. Doesn't matter if you use a VPN or Tor or whatever the fuck antenna not to send it.
and since probably 90+% of the network comes in through KYC onramps it means 2 things,
one, those users already need to do *something* to obfuscate their ownership
and
two, people who bought nonKYC are hiding in MUCH smaller anonset than the entire utxo set.
in short,
Bitcoin privacy sucks.
and nothing you've said so far is relevant.
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There is nothing identifying about having someone steal your private key.
Telling the IRS "I lost my asset"
is going to get you exactly nowhere IRL.
and excuse me
but its a childish attitude
as if all yall maxis are going to disintermediate the assholes who run the world and they're going to shrug their shoulders and say "oh well they said they lost their Bitcoin in a boating accident" ๐