A thought about KYC and "tainted" sats and centralized exchanges.

This process will continue to occur whilst the majority of Bitcoin users merely pretend to care about participating in the network as a peer while actually only using Bitcoin to increase their fiat value on a centralized exchange. Decentralized exchanges can solve some of these problems however at the end of the day, if said decentralized exchange has no fiat liquidity offramp it wont be used by these faux peers abusing the Bitcoin network. Bitcoin is entirely fungible assuming you are using it in a distributed networked economy and not as leverage to gamble on trades to make more fiat value. Lying about what you use Bitcoin for has demonstrable consequences in its market effect, we are seeing these consequences play out in the form of KYCd tainted sats. The solution was always available just requires people to stop lying about their intent with their Bitcoin holding.