Ring signatures are unwound when the tax authorities require you to provide your password to justify your tax basis.
Use more than 1 wallet? Plausible deniability is such a nice toy...
That doesn't address the issue. If tax authorities require you to prove your tax basis, then you must unwind the anonymity. When you unwind it, you reduce the anonymity set for everyone that mixed with you.
It would be much better to be able to say, "okay here is my password" and the authorities still can't unwind it. I know how to design this. You then say you've kept all records and complied, but the system is too anonymous and this is not your fault. They would have to make it illegal to use the system. If we get to that stage, it will be Mad max war of the people against the government.
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I don't believe it will ever get to such a stage, there are easier ways to stop zerocash since its not untrustable anyway. So many people rely on a government, without one who would step up to do things? Another government.
There won't exist a world without a central authority, or something resembling it, mayble something similar to how the U.S government works with having different branches that don't hold power over the others(so it's not completely centralized).
Living in an anarchist world would be hell on earth, I don't understand how so many bitcoiners want that... It would mean no leadership at all, everyone killing each other and worse since there isn't any rules etc, we'd probably go extinct if such a thing ever happened