You're not wrong, but Bitcoin is like a gun. It's not really super useful as an individual, alone, if your threat model is the massive government you live under.
It's about cost-benefit, and we win this calculation.
So what, if they know where we all live. They have to come confiscate it. If they want to spend their resources confiscating, they will take from Blackrock and Coinbase and real sovereign Bitcoin owners will be far too expensive to attack in aggregate.
Be expensive to steal from! It's so easy. Make an exit plan, like if you were living in Syria or something. Guess what, they can't stop you. That's why they won't come for you.
Like trying to squeeze water, it will escape through your fingers. They'd rather have your sales taxes and none of your Bitcoin than to see you escape entirely.
Don't stick your head out, and be the first target, but there is no hope for the State in your proposed scenario. Let them come. They make it obvious their weak position when they do. This isn't 1933 where the only people who understand money and gold and realpolitik of international political and banking relationships were insiders and experts.
If you prepare for conflict, you prevent it. Bitcoin is maximum preparation. Come what may, I have the options.
