And we're awake again.
Gvts do not need to track your wallets or your LN. They simply decide to require that when you buy a big ticket item, the SELLER has to KYC you.
Let's say my current X in BTC pops to £300K, and I decide to buy a house. I can't, not without proving the source of my funds, (which I can only do by showing that the money went into the wallet on X date and my timing was brilliant), AND then giving the Gvt a load of info about me in the property purchase process.
If I tell the lawyer it's none of their business where the money came from, they can't process the sale.
By the time we want to enjoy the fruits of our early recognition of the power of bitcoin, the laws in most countries will have caught up.
Take taxes. I did have someone try and explain how they were taxing bitcoin in the land of the free, and fuck me tell me you have a single currency business environment without... anyway in the UK the tax people worked out how to treat crypto years ago. It's a forex. Treated just like dollars are. You record fiat value in and (for CGT purposes) out and pay tax accordingly.
Essentially, you can have a perfectly private crypto money system, like cash has been since forever, but it doesn't get you out of the system, any more than living cash only does.
