Hardened Bitcoiners will tell you that there is no returning to fiat. In practice it would depend on your size, timeframe, and regulatory environment.

Most of the time the state isn’t actually interested in putting you in jail - they just want to steal your money. If you’re prepared to declare a reasonable cost basis and pay their extortion taxes I don’t think you’ll have a problem, at least in the western world.

The dream of Bitcoin is still peer to peer money. I understand that scaling and security changes this a bit, but anyone who is already here and has stacked for a while will always be able to afford to make Bitcoin transactions. Pay directly in Bitcoin when possible.

There is nothing special about KYC sats that will force people to accept them or not. A bank today still wouldn’t trade you fiat for your KYC Bitcoin. The most realistic plan would be to use a foreign exchange and trade for stablecoins, if you’re not able to use a regular KYC one.

In places with high inflation and really bad capital controls, there are local money markets where people make a living out of doing illegal currency swaps. I could see that becoming a bigger thing here if things continue in the direction they’ve gone.

My final point (long rant my bad) is that this topic gets to the heart of the entire social issue. We need people to understand why this is all important, and unfortunately 90%+ of people currently don’t care, are distracted, or are so unhealthy physically and mentally that they cannot break free. We will never get to hyperbitcoinization without the broad culture shifting, whether that be bottom up or top down. For now, the nature of most people leads them to value compliance, fitting in, and listening to authority more than freedom, thinking for yourself, and prosperity. And there’s no difference between KYC or non-KYC Bitcoin when it comes to that problem. Both entail risk.

So am I, I've never tried it.