~snip~
That’s right. If you wanna do it that way, go through P2P since there’s no KYC needed. It might not lead to real mass adoption, but if we’re talking about privacy, that’s the route to take. And even if Bitcoin fails as a legal tender, it doesn’t really matter, people don’t care about the title. What matters is it still works, and we can still use it to transact through its decentralized nature.
If you think that P2P transactions without the need for KYC verification completely preserve your privacy, you are mistaken. Such transactions may be untraceable, but we cannot be sure that our counterparties are not passing on information about transactions to third parties. So, privacy is only preserved within the Bitcoin network. As soon as you exchange Bitcoin for fiat money, your privacy is at risk. The only way to maintain privacy is to conduct a P2P transaction through a secure meeting. But if we exclude cash, such transactions are impossible.