What will happen if bitcoin transactions became anonymous like Monero tomorrow? Will it increase the demand of bitcoin even more in the world ? Or will it have negative effect like government making restrictions on bitcoin ?
What do you expect to happen? I think that the answer is pretty obvious. All governments will start a crusade against Bitcoin and BTC will get delisted on almost every centralized crypto exchange. Bitcoin mining would most likely get banned in most countries around the world. The BTC price would probably drop to levels below 1K USD. The demand for BTC would drop significantly. The real question is, why would we want Bitcoin to become a privacy coin like Monero? We already have Monero and other privacy coins. We also have BTC mixers, but I don't recommend them. If you really need a privacy coin, just use Monero. Bitcoin is great as it is and there's no need for additional privacy features.