I find it scary.

They are cooking a similar regulation in Europe, as well.

They don't want us to self custody Bitcoin.

Because then we can send it, without permission, to anyone we want.

And if we keep Bitcoin on an exchange, or buy their ETF, they can censor or confiscate it with one click. And tax it.

What if they make it impossible to legally send Bitcoin from an exchange to your wallet?

I guess exchanges in the US, Canada and EU will stop supporting withdrawals.

Then we will be left with an option to keep Bitcoin on a regulated exchange, or buy it peer to peer, Bisq or Robosats or alike, or buy from a centralized exchange from some other jurisdiction, e.g. from El Salvador.

But then, freedom-loving governments of Europe and North America, for our protection of course, can block bank transfers to exchanges outside of the EU or NA.

But OK, even then, we will be left with the custodial or P2P options.

I guess that's manageable. They will not be able to enforce a ban on running a wallet software on your computer or a phone, and a ban on buying P2P.

I mean, they can make anything they want illegal, but it's impossible to enforce, I think.

But for sure they can hinder adoption.

And also, what if, in the future, someone wants to sell a sizeable stack, and even dutifully pay capital gains tax... What if they say you must show some proof of the source of funds?

I think we all need to keep good records of all the purchases we are doing now.

To have a future option of selling it to a regulated exchange.

P2P will likely always be an option, but if it is deemed illegal in a dystopian future, then the sale price will be largely discounted.

Does my thinking make sense?

Anything else we can do, to protect our ability to save for the future, using the asset they cannot print?

I guess it is good to have both non-KYC and KYC stack, separately.

If they go after you, to seize your KYC stack, which they know you have, you give it to them, at least the part you have not lost in the boating accident.

If you want to sell on a regulated exchange, you easily can because it is tagged.

And the non KYC-ed stack, you can sell P2P on the future.

I'm afraid that we will have two parallel bitcoins in the future. Official, on regulated exchanges and ETF, and non KYC-ed.

With different prices and transacting methods. I hope I'm wrong.

Anyway, my thoughts. Happy to hear what people think. Thanks for reading.