I'm afraid there will be two different markets for Bitcoin in the future.

One will be KYC-ed, official, tagged Bitcoin, and the ETF. It will be easy to buy or sell, easy to spend, but it will be taxed of course, and hard to, or even illegal to self-custody, and we will need to show a proof of the source of funds it was bought with.

The other market will be a shadow or even black market for non-KYC self-custodial Bitcoin. It will be hard or impossible to confiscate, and close to impossible to enforce it being illegal, if they decide to make it illegal, but, while it is easy to store the seed backup and run a wallet app on a computer, in such hostile regulatory environment, I guess it will sell on a black market with a steep discount.

I hope I'm wrong and they will not try to make self custody and running a node illegal.

And today, as much as I'm hesitant and unhappy to admit it, I think it is wise to have two separate stacks. KYC and non-KYC stack.

KYC one with good records, transactions history, due taxes to pay, but you are OK.

The non KYC-ed one, well, in case needed. In the dystopian scenario, might be a good thing to have. It's not illegal today.

What do think?