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I mean theoretically the Feds can take over every bitcoin payment rail and insert themselves into the process.

more likely is AI to track all transactions, and another to assign wallet addresses to individuals. then the automated message is sent out… “please send 1034 sats for the following transactions… payment received within 24 hours will not incur additional fees”

Hm in a hyper-KYCd world you are right. nonkyc literally makes it impossible for Government to know. But yeah majority of btc is kycd so we shall see

No, they can’t.

Sure, on conversion out to Slave Ducats. EZ.

To do it otherwise requires a few million $5 Kentucky Speedwrench attacks or the heat death of the universe.

Ease of taxation is probably at least why inflationary policies are favored. Then even if your hard assets appreciate, you probably pay tax on capital gains, or you borrow against the assets, and the lender pays tax on the interest collected.