I’m not sure how the difference of treatment between “cleaned” and “dirty” #Bitcoin by financial institutions will end up playing out but the worst case scenario would be a different exchange rate and market for each category. Unless Bitcoin moves to proof-of-stake I don’t think that the censorship of P2P transactions of “dirty” bitcoins is likely. Having two markets/exchange rates would already be a quite destructive consequence. https://casten.house.gov/imo/media/doc/blockchain_integrity_act.pdf
I admire Bitcoiners who still haven't given up its potential use as money despite all the risks involved. Non-fungibility means plenty of different exchange rates. The same could happen to cash vs. KYC-fiat.
Monero fixes this, but it would need a boost in mainstream awareness now.
But maybe it is best for it going underground for a couple of years.
The challenge for #Monero is going to be the accessibility to the masses. It would be a shame to end up as an underground tool. But with #KYC on the base layer #Bitcoin is in the same position (there won’t be any freedom to transact for KYC bitcoins).
