They would create just another shitcoin.
Discussion
this is for granted! but the question is: if all the capital is there, all the institutions are there, regulators are there, what do you think the normie think is bitcoin? WE know the difference, the rest of the world would probably be not able to understand it
Do you think by censoring transactions you would add to Bitcoin or make it worse? What incentive is there for me to use your fork?
Imagine being a normie (that is, the vast majority of the humans). By one side you have a Bitcoin that institutions recognize and accept. On the other side you have the bad bitcoin that is used by pedophile, boils the oceans and kill unicorns. Which one will you use? And if the shitcoins can be censored it is to fight terrorism and make sure everybody pays the taxes to build the roads, of course.
What you explain is paypal tho, not Bitcoin. In such scenario, you have to put your wealth on the line. Choose the fork that would win. Normies would wait, plebs would choose Bitcoin and Blackrock would choose the shitcoin and get more and more rekt while Bitcoin would continue as it continued before. Tick tock…
to me and you the difference between PayPal and Bitcoin is clear, but we are a very very small niche.
For the mass if you call PayPal Bitcoin, they'll think that it is Bitcoin.
Blackrock ETF will bring Bitcoin to the masses, it won't be just me and you.
They'll move a lot (a fuckin lot) of money and mass media "information"