Okay sell a car to a firend for one large utxo nokyc.

I keep that utxo separate from the rest of my stack and it to buy p2p.

I buy large thing and get change outputs.

I buy smaller things and get smaller change outputs etc.

At some point I buy a product from someone. they are a Bitcoin business and they get my irl identity.

And at a certain point the IRS gets irritated about bitcoiners evading taxes and raids that business.

Now the feds have a big list of Bitcoin transactions from them. Including mine.

They contract with Chainanal to find out all about the transaction data that they got.

So now even though I originally got this large utxo nokyc, the IRS now knows how much I spent and and its current state.

So they come to me and say "okay what did you do here? what is this transaction? where did this big utxo come from? how did you pay for it?"

And I'm responsible for explaining the whole fucking movement of funds from the beginning of that utxo.

in other words, no fucking privacy.

In contrast to Monero

Where they would come to me and say "okay we know you bought this thing with Monero."

But they have zero visibility into anything prior to that.

i know facts hurt.

put on your big boy pants.