They're not interested in tracking the zaps. They're interested in when you use them to the purchase of the car, the property, no matter what currency you use. THAT is what can raise flags, all the things that people are looking forward to enjoying when BTC is $1M. Bitcoin is essentially just a more trackable form of cash re AML. Buying groceries? No one cares. Buying stuff of value, you're not making a private exit.
Discussion
But how? How do they track Lightning? Now there are some options if you have a tracking node in the route. With the next lightning updates it will get even harder.
But overall I think you are right. Which is why I always advocate for mass adoption over privacy.
True privacy will only be possible when we have enough traction to throw these evil overlords out.
And we're awake again.
Gvts do not need to track your wallets or your LN. They simply decide to require that when you buy a big ticket item, the SELLER has to KYC you.
Let's say my current X in BTC pops to £300K, and I decide to buy a house. I can't, not without proving the source of my funds, (which I can only do by showing that the money went into the wallet on X date and my timing was brilliant), AND then giving the Gvt a load of info about me in the property purchase process.
If I tell the lawyer it's none of their business where the money came from, they can't process the sale.
By the time we want to enjoy the fruits of our early recognition of the power of bitcoin, the laws in most countries will have caught up.
Take taxes. I did have someone try and explain how they were taxing bitcoin in the land of the free, and fuck me tell me you have a single currency business environment without... anyway in the UK the tax people worked out how to treat crypto years ago. It's a forex. Treated just like dollars are. You record fiat value in and (for CGT purposes) out and pay tax accordingly.
Essentially, you can have a perfectly private crypto money system, like cash has been since forever, but it doesn't get you out of the system, any more than living cash only does.
My plan is that my Bitcoin will be spent by my great grandchildren, once all the tyrants are extradited to Mars 🤷
Gentle Reminder of the Yorkshire saying : Clogs to Clogs in three generations :-)
The ex financial adviser in me would suggest a Trust, but is also aware that at least one member of the beneficiary class must be alive when the trust is made. And also, that (but check notes) settling assets into a trust is a disposal for capital gains purposes.
Extraditing the tyrants to Mars is probably the easiest part :-)