Bitcoin Forum

The fact this isn't talked about much even more so after Canada froze bank accounts watching people tx bitcoin and ETH addresses tied to other ETH addresses are being black listed / banned is really bad.. 

BTC will fail or much much much worse become the money of enslavement if privacy is not added.. Unbreakable privacy..

No. What we should be fighting against is the blacklisting nonsense. There are ways to protect yourself from trivial de-anonymization, even if the majority doesn't utilize them. The problem doesn't lie on privacy techniques, but on users who are confident with accepting arbitrary rules to pass from entities that don't want their good, and that rely on irrational mechanisms such as blacklisting every coin that comes from a mixer.

And we should fight for privacy protection, of course. The Lightning Network is a significant on-going update for those who value privacy.

Privacy of some sort on the protocol level will be very difficult and will take a lot of time(assuming it would actually occur someday). Also, I'm pretty sure privacy is frequently being talked about even before this incident you're referring to. Safe to assume that adding privacy(regardless if on other layers or on the main layer) is simply just not that simple to be implemented in a few years.

Bitcoin is inherently public, as we all know.

Exchanges make people's ID cards available on demand to the government, complete with their addresses.

Add these together and multiply the result with chain analysis companies, and you have a cryptocurrency whose transactions can be monitored by the government for a small amount of interesting people.

The publicity of the ledger and exchange's KYC requirements cant be removed - trying to remove the former will break bitcoin, removing the latter will just get it banned everywhere. We can do something about chain analysis companies though - use mixers to obfuscate the link between your (non-KYC-tainted) addresses.

This is why P2P platforms shall be more entertained as compared to exchangers. This is the only thing that can save bitcoin or other coins from getting disturbed with government banishments.

Unfortunately, Some governments do ask P2P platforms as well to get their users strictest KYC and share the data during taxation.

May be being public ledger we are little on downside of its use case. But preferring P2P platform is closest thing towards winning this platform.

Fighting for privacy? have you ever fight a thing that doesn't allowed in your country before? just like you fight to make gambling is legal when your country not allow gambling. I believe you will get jailed since you're breaking their law and everyone disagree with your opinion, you're just a citizen without any power while you're want to force a high rank person to listen you, it's a joke lol.

It's useless to fight against the government, just protect your privacy by other way e.g. using mixer and decentralized exchange.

Countless of times we've been hearing onnthe embargoes levied on accounts by centralized bodies, in other to avoid unexpected and unnecessary ban, we must learn how to exercise this freedom through the means we use in securing our asset which is to be decentralized indeed without the use of centralized exchanges that could later tampers our confidentials for the government use against us.


This is a service through which is available already and you can enjoy it abundance by operating a full node on the blockchain or make ilise of hardware wallet or any other could storage means to secure your assets if full node technicals could be a challenge.

Bitcoin have give us more privacy but depending with this history were Canada froze bank accounts watching people tx bitcoin and ETH addresses totally fault from the bank. I sure when using bank transaction detected with how much money sent and received actually we are influencer and investing with bitcoin only. Seems not only in Canada but my country ever have this cases, always investigate when receiving huge amount credit in our bank account. I think bitcoin have make most privacy but when needed KYC for withdrawing to be cash trough of exchange market and connected with bank account will show of our identity.

Need improvement at the future how bank more take care our privacy without any investigate when crediting huge amount in our bank account, not all claimed as illegal activities when receiving much money.

will never happen. The bank will still investigate the large funds that are credited to check who the account selector is. As bank users, we can't do anything, that's their authority and it's written on the term and condition sheet that we signed. Banks have the right to investigate all kinds of transactions made.

Privacy becomes something they can treat as they please, some of them even sell our personal data to several insurance companies and others. Bitcoin remains the best privacy, no matter how many privacy transactions are carried out, it will still be safe, as long as it is not published.

here is the thing people are not realising

back when bitcoin was just 'property' in 2009-13. we had good privacy. because bitcoin had property rights(strong protected rights)..
however when bitcoin became government recognised as "currency" property rights of privacy, changed to privacy rights of currency.. these rights are different. under currency the privacy rights are part of the bank secrecy act. no longer the property rights to privacy
meaning the protections of privacy got weaker

and under the bank secrecy act. financial businesses have the right to monitor their customers use of funds and report suspicious activity to government. especially of their value is being used in ways that its trying to hide its use.. such as mixers, tumblers and laundering

yep before 2013 bitcoin was treated like collectables(pokemon cards, antiques). where sales and payments and custody did not need to be monitored.

if bitcoin transitioned over to a monero algo. what will happen is that the financial services like banks and exchanges that are regulated would simply not be able to manage/handle bitcoin.. much like you dont see monero on those regulated exchanges
now here is the thing. bitcoin does not and never has asked for your birth certified identity.. you will not find a bitcoin transaction that displays who you are or what you bought

all the information that businesses get, and share and pass to governments.. is due to users passing their ID to businesses/services.

so it doesnt matter what algo bitcoin has.. the problem is the services at the edges of the network that then share information between themselves

bitcoin is not the problem its the services. and the regulations they have to follow due to the jurisdictional gains that politics has managed to get by defining bitcoin first as a currency.. then as a asset currency and lately as a commodity currency. slowly getting more and more involved in bitcoins jurisdiction

which these political definitions of bitcoin then affect how businesses and services handling bitcoin on behalf of users then has to handle the users

yep under asset.. (SEC jurisdiction) the sec could not do anything about the environment causes of mining.. but under commodity(CFTC) allows a gateway for the EPA to get involved in mining.

changing bitcoins algo to monero may cause regulated exchanges to stop servicing bitcoin. and changing the mining algo to PoS may stop the CFTC from punishing bitcoin.. but the only place to stop governments from receiving names of people and what they bought. wont be solved by any algo change.. it would only stop if people stop buying/selling things to other people that require names/home locations

because bitcoin(the protocol) does not have privacy issues.. its the services that ask for personal info thats the problem


the ultimate solution is not to mess with the algo yo avoid utility
its actually to change the definition of bitcoin back to being a tradable property instead of a currency

there are some idiots in this forum that want to brutilise bitcoin saying its not fit for purpose just to hinder bitcoin utility while they advertise their other networks as the go to place people should use instead.
they want to limit bitcoin utility. they want to change bitcoin to be less useful and less trusted.

lets not play into that game. lets instead recognise where the real problems are and solve them

Nope. Bitcoin users do experience privacy invasion, besides KYC & AML. The simplest way to violate your privacy is to not utilize coin control. How do you think figmentofmyass was caught to using multiple accounts (https://bitcointalk.org/index.php?topic=5313637.0)? All that needed was a trivial blockchain search. Same as with address reuse.

That's for certain. It has happened with Monero, and so is with Litecoin now that it upgraded to Mimblewimble.

Adding a privacy feature to bitcoin is a good idea but on the other hand there is already a privacy coin called monero and the exchanges are banning it left and right… What do you think would happen to bitcoin if it was also fully anonymous? It would probably get banned from the exchanges too. Without the support from the exchanges bitcoin adoption would take a huge hit. Most crypto activities are happening on the exchanges and that’s pretty sad imo.

but thats not by finding out someone done sig campaigns via just blockchain exploring..
its from them revealing their sig campaign usage on this forum by publicly giving out an address on a public post on the forum

again its the service..

if he done private sig campaign signup via private message.  and used more addresses. he would not have been found

again not a bitcoin problem but the user->service problem linking him

EG actual real world physical gold is private..
but if i write on a forum where i want someone to send some gold to or where i store my gold..
its not the golds fault.. its the person and the forum s public posts fault

the solution is to not do sig campaign signups via public posts. and instead ask to sign up via private message thats not stored on a database

notice how in the story the guy exploring the wallets. recognised a NAME and then seen that name was associated with sig campaigns.
and also the same name was used in a scam

he tied it together more so by name recognition found on services

your also forgetting your favourate altnet and liquid is not accepted by most regulated exchanges due to them being promoted as privacy tools. and how exchanges blacklist payments that went through mixers

changing bitcoin to be ultra "privacy" will not only drop utility with services(bad for users) but also by breaking the accounting security that can easily prove that all coins are descendants from their mined coinbase. is a security risk in itself that can risk some of the fundamentals of bitcoin

Privacy is live and I mean genuine privacy, and this is how it was meant to be if Satoshi had a textbook about Bitcoin.
The main issue now affecting Bitcoin privacy is how we use it. Many exchanges, websites, betting apps, trading platforms, online stores, and others are accepting Bitcoin, and we as enthusiasts are making use of them.
Some of these services may have comprised in terms of their users privacy just to get licensed.

I would not blame the privacy protection of Bitcoin for that. I am also from a country with issues on Crypto-currency but I get through all that by knowing the platforms I am engaging in Crypto-currency. The government is trying to truncate Crypto-currency users the more reason we need to work smart.

The "Privacy" is given voluntarily to a bank, it's a requirement(1)... For advanced bitcoin users anonymity is true privacy, anonymity is acquired in bitcoin without requirements, but most non-advanced users don't understand that the use of bitcoin gives anonymity to the extent that your privacy (provided¹) does not affect the anonymity of bitcoin.

And the issue is so difficult because we have ceded or surrendered our privacy by obligation for so many years that it turns out that the anonymity of each bitcoin user who is not affected today must weigh this idea that at any time it is subject to public scrutiny.

This is inevitable and something that we cant really able to avoid as long we do touch up fiat money or speaking about conversions, then we can really expect that everything would really be that touched by the

government which is simply through those exchangers since this one is the main or medium for those crypto people to make out conversions and even how decentralized a certain crypto coin would be but on the

time that you do touch up these platforms then the privacy that you are really that fighting for would totally be useless, or on the time you had sent out your documents.
DEX and Mixers would really do the job on some point as long it doesnt touches up fiat conversions.

one option WAS to stop being reliant on central services.. with the whole DEX and DEFI stuff..
..but guess what because still being "currency" jurisdiction. politics just add more rules. where instead of licencing CEX they want to licence DEX. this is with new laws where not just businesses but people operating as sole traders(self employed 1 employee businesses) offereing services of custodian/trade on behalf of other users for a fee/commission are now having to register as money service businesses and follow compliance policies. where they have to set up business level bank accounts to serve customers.

some people think "how will they find all these DEX individuals" the answer is simple follow the fiat.they are already making rules where if banks see people using personal accounts(not business accounts) to do lots of wire transfers far above what a normal account holder does. it becomes a suspicious flag

the same goes for those that avoid bank account fiat transfers and instead use paypal/venmo. they too are getting monitored by their staff more harshly to spot lots of deposit/withdrawals to declare them as possible businesses using personal accounts. flagging them

we seen this mostly happen in localbitcoins.com but now starting to see it with users using DEX/DEFI platforms

and yes altnets like LN where routing is the "person who offers payment services for a commission" apply to those too

.. the next strategy WAS to avoid actual fiat and just DEFI/DEX exchange between btc and stablecoin

kind of works. as it does not require asking for account holders real name to verify account ownership. which is why LN is trying to add stablecoins to its 'atomic swap' capability

but over all to escape the regulations. is to avoid:
services that regulators are interested in.
running services in countries where regulations are applicable
or
get bitcoin redefined back to "property" status. which gives us back better legal protection rights..

there are reasons why regulators want to grab onto having jurisdiction of stable coins.

there are issues with trying to convince governments to redefine bitcoin back to being just a "property"

and so the option is to have services set up in countries that have yet to define/ban/licence bitcoin services

It's there and bitcoin has its privacy but what's concerning are their trackers that have been doing it and they've got connections in the exchanges and through them, a user that's confident about them will be one of those that will be traced.

P2P transactions are good as it is and no other people between the two will know your transaction not unless you step on exchanges and they start asking for kyc compliance.

Monero is still listed in Binance and Kraken (very popular exchanges).

There's also TradeOgre (no KYC needed) if you wanna exchange XMR for BTC or vice versa.

But yeah, I agree that if BTC became like XMR, it would be delisted by many exchanges, which means less trading volume, which means lower price.

It's probably the same reason BTC devs don't want to adopt an ASIC-resistant algo. ASIC mining makes it harder to mine for the average joe, so it becomes more scarce and thus more valuable.

During the CPU/GPU mining era it was a lot cheaper, since you could just do it with a regular PC.

The thing is most people actually don't care about their privacy. They say they have "nothing to hide". With this mindset, we can never expect governments to give up on their task to destroy privacy for good. Bitcoin by itself may not be private, but there are tools you can use to help make your transactions private. For instance, you can use a non-custodial mixer to obfuscate your utmost sensitive transactions, or simply convert your BTC to a privacy coin like Monero or Zcash.

Some would say using a new BTC address for each transaction is the perfect measure to help protect your privacy. The problem here is that you're stuck with centralized exchanges which force you to provide your personally-identifiable information. Decentralized exchanges exist, but they have low trading volume/liquidity compared to their centralized counterparts. Not to mention, they're not as easy to use as you think they are. With the introduction of CBDCs, governments will become more invasive than ever. It'll be up to crypto advocates to help defend privacy for the sake of our liberty and freedom. Just my thoughts ;D

The problem is not with Bitcoin I think but with third-party services, governments are trying to eliminate privacy by forcing third-party services to demand KYC or even freeze some people’s accounts, here is the basis of the problem, unless the need for third-party services is eliminated We will not obtain the required privacy. We know that Bitcoin started out as a peer-to-peer payment method without the need for third-party services.

This is clearly one of many examples of why Bitcoin's essence is starting to get lost because of government is interfering.
What decentralized becomes centralized based on them, that's not how Bitcoin works at the beginning.
Overall, in the future, they will realize that they cannot totally control Bitcoin and they will look for some alternative to lessen some criminals or illegal doings using Bitcoin.

Except with third party like Bank we need another alternative ways how keep safety and privacy about transaction fund withdrawing from Bitcoin or altcoin, many time withdraw amount above $200,000 in Bitcoin to bank next few days later have investigate from the bank about our money credit. Just one way how keep privacy with Bitcoin if have been legal currency transaction and we don't need third party for withdrawing Bitcoin or Altcoin fund to the bank. Need more than several years later if want to see Bitcoin or cryptocurrency have been legal transaction payment currency.

We need to push this idea because the more they update their rules, the more they are being hostile to us. I mean these exchanges are getting more and more strict when it comes to their rules. Not long ago I keep praising our local exchanges for their convenience but in their last updates, comes the unexpected surprise where they finally check every single detail on where your BTC came from and I got banned because of their stupid regulations. If this won't be fixed in the upcoming years, we won't be surprised if they have full control of our money again.

How?
You buy Bitcoin, you use your bank account or your favorite exchange. All of them now has KYC glued into them to be able to buy at higher amounts.
You sell, you go the same way.
I think Mixers are the only way to prevent them from easily tracking you.
Having privacy is a joke now. We are dealing with the government that doesn't want you to be invisible so they could easily take from you whenever you are in debt. Bitcoin is not the problem, it's the steps before you purchase and sell.

If you're trading BTC for ALT, you should use a DEX. Bureaucratic-free and private. For XMR <-> BTC there's implemented atomic swap (https://github.com/comit-network/xmr-btc-swap), but I haven't tried it to see how it works.

And that very moment, we will witness the recognition of DEX. Unless of course you're indulged to report the destination of each of your transactions.

My views are very clear about it Web 2.0 was especially designed to spread myth that data is private that not the fact in Web 3.0 things can be different but for now its myth for the all internet users that Privacy is in their hands they wven don't own what they have ( Content ) its always manuplated by the Market Capturers as Google

Completely disagree.  Don't get me wrong I am a big privacy advocate. I use signal as often as I can, I'm a big fan of Monero etc.  But if you make bitcoin a truly anonymous coin, it's going to face far harsher scrutiny from governments and a sizable amount of governments will simply ban it for that alone.

Think about it this way, some countries allow for zero freedom of speech, women who cant vote, drive, or show their face in public, etc etc... you think they are going to allow for a monetary system that they absolutely can't track and regulate what so ever? The answer is no.

Total privacy is utopia and in fact, it is being more and more restricted each new day as governments advance their regulations in order to watch closely the finances of all their citizens.

Blockchain is a two edge sword: at same time it gives adopters the opportunity of privacy, it can be also used by governments as a tool to restrict individual freedom even more through their CBDCs.

Also, it is a matter of time until governments stop mixing services which in theory allows the aimed privacy, as it happened to Tornado Cash already.

Yes.

It's on them and that's why KYC is being enforced to these services for them to have a trace whoever is using their service. But even they do that, when the majority in the community starts to act together and just does transactions directly to each other/p2p, they can't stop that madness.

And we will back on that beginning when things becomes worst from these regulators and service providers.

Actually issues like this with the banks are always being talked about here in the forum. We are always being reminded of how important it is to use a crypto more than the banks because they can do restrictions about your money. There are really banks which are allergic to cryptos and I think they will warn that dealing with crypto transactions using your bank is not allowed.

Maybe those banks users still continues. That could be one of the reasons on why they got banned. Btc won't fall for that reason but it will more pump instead because bank users are going to transfer here if that issue arises. Btc's default privacy is already enough but there's still a way to make it more private.

We should always bare up into our minds that once we do touch up these institutions or something which is regulated or centralized then expect that privacy is never been part of it thats why you should really make yourself aware about these stuffs if you do really give importance about anonymity.
This is why cryptospace did really get soo much interest and support due into this manner.We could really have option whether on making ourselves dealing with centralized services or things
or would opt out on the other side.
We do have our own will and we arent that blind on not to see on whats available and how to dealt up with it.

Actually I cannot withdraw fiat to my bank account from trading bitcoin or other altcoins including ETH without a centralized exchange with KYC. Honestly I'm glad my country's government doesn't ban trade, they regulate it and make a rule that we have to pay tax for every trade. Yes it is good for both parties as we can trade it legally although KYC remains the reason why we have no privacy.

Of course privacy is important but nevertheless I don't think it should be hiding anything legal though I don't know how secure my personal data is on that centralized exchange. For years I trusted that centralized exchange with my personal data, so far no problem but there is always a risk of data leakage, for sure.

Just be carefull where you expose yourself. If you don't really have much to hide then you do not need to worry all that much.

The internet is not the safest place to put personal information on for others to look into.

I bet the new generation has a totally different mindset since they do not know better then that there is internet. They can not
imagine a world without it. But a bit older people have awareness of when the television got introduced and later the birth of the internet.

You can still technically use Bitcoin without third party services. The only thing you would be required by law to do was to file taxes. If you're doing that, then there's no reason why you can't just use Bitcoin without any other third party.

You can use peer to peer exchanges. The only limitation would be when it comes to escrowing funds, usually that's required by a lot of users here. There's no easy way around that either. Although, at least with that you, and the other trading partner can decide what escrow among you, and you aren't forced into one. For example, using exchanges is usually limited to your geographical area to some extent.

Well I guess you don't need to worry much around if you are regular person without doing anything wrong so exposing yourself is kinda fine with that. But if you do something illegal maybe for sure you doubt about providing since you will get caught for doing something that can expose your identity.

Internet is not the safest place so we need to be more careful on platforms we go and to the people we meet online.

There may still be some bitcoin wallet addresses that are incorrectly blacklisted from that protocol even though they have never transferred bitcoin to an exchange and their owners are unidentified. They might not have done anything wrong, but the fact that they are unknown indicates that they maintained their privacy to a degree that prevented anyone from tracing them. What exactly am I saying? What are some users trying to accomplish when they transfer mixed bitcoin to centralized exchanges where they are verified and claim to need privacy?
Avoiding centralized exchange is the first step in preserving privacy because that is where government trained security agents first threaten to obtain user information prior before arresting them.

Bitcoin isn't a very secretive private network, but no matter how hard they try, the satoshi path will continue until it is completely unreliant on anyone.

Privacy is a must.

We are so few.. code is the ONLY tool of power we have.. the only one.

Without it hell will become earth..

Everything we do tracked.. everything. (the future) To much meat did you by this week? no gas for your car or house...... (current times) disagree with the top political party .. Canada.. entire bank accounts frozen, still to this day for donating against JT...

I know of monero, I have used it and do use it.

Bitcoin is the future..

Again... Bitcoin will free or enslave humanity.... 

We will die to what future do we leave..... 


All mixing services at this point I assume have been destroyed...

El salvador is a glimmer of hope in the darkness.. be but a small one..

Most people do not care for years UNTIL they cannot buy food they want because it would increase their "carbon foot print" too much.   Or their social credit is too low. Or they have been deemed to have had to many coffees for the day, they have seen to much of one news station for the day, they........... the list will not end. ... we are in the trenches now....

It does appear we agree my friend.

I believe all mixers are infiltrated by the govs attempt unknowingly(being optimistic here) to destroy humanity's hope and joy.















Oh my I am on quite the rant I will stop for the time being.

That's true! If anyone's interested to jump into 'L1 privacy for Bitcoin', here's the thread for it. ;)
https://bitcointalk.org/index.php?topic=5410526.0

I do think it would be great to have better on-chain privacy, and there is some great tech that is being developed and experimented with in a few altcoins that are also mentioned over there.

Is that the world you want?

IS THIS THE WORLD WE WANT?

Do you want BTC to succeed if it means the enslavement of humanity but you are rich..

Would you really want to be a king in hell or an individual of heaven.

Who gives an F what Iran, China, etc do... we are at war for all of humanity we really really are.....




okay.. I couldn't stop ranting.. last time for the time being.. maybe.. hopefully lol.. me bad.

Since you can't find a lot of them in congress is going to really fight for privacy, we may have to do it for ourselves.

If you have exposed yourself to KYC, then its something to dealt with in the future. I guess you have to minimize your activity on it and do more under decentralized platform with fresh wallets that can not be linked to your accounts on exchanges.  Privacy is all up to ourselves.

While it's possible to avoid third-parties when using Bitcoin, you'll face a number of difficulties that will prevent you from getting the "full experience". For instance, decentralized exchanges don't have the same liquidity and ease of use as their centralized counterparts. There's also the issue of recovering your funds due to loss, hacks, or theft. Some centralized wallet providers have safeguards (eg: Coinbase) that would protect your Bitcoin against such undesired situations. That's because they're regulated and are insured in every way.

By holding Bitcoins yourself, you'd be on your own if something undesired happens with your holdings. The good thing is that you will gain more privacy and have complete control of your funds. I guess you're going to have to evaluate the advantages/disadvantages between using Bitcoin with third-parties or all the other way around. With all of the tools we have at our disposal, I don't think privacy will cease to exist during our lifetimes. Just my thoughts ;D

Privacy and anonymity are important.  Whether bitcoin will fail without them,  I don't know. At some point bitcoin reaches a point where one doesn't need to be exchanged for fiat, people just exchange in bitcoin which makes anonymity even more important.  But also easier since you don't need a centralized exchange.

You can still achieve privacy/anonymity on Bitcoin if you carefully follow the necessary safety precautions. Using mixers, Tor, or even changing BTC addresses for every transaction, should be able to improve your privacy at every level. I'd steer clear from centralized exchanges because they force you to provide personally-identifiable information (KYC/AML). For true anonymity, one should always use a decentralized exchange or trade Bitcoins in-person (P2P).

I wouldn't worry about governments increasing their regulatory efforts against Bitcoin as long as it remains decentralized. Just my opinion :)

Yup.
At the end of the day, we'll all go back to private blockchains, as we'll own our privacy. Just like cash.
People getting tired of hacks and info leaks will just move into proof of work privacy coins with strong capabilities.

I'd look into https://twitter.com/beamprivacy (https://twitter.com/beamprivacy) if I were you. I'm currently mining at a loss, but idc tbfhwy.  8)

this is what people like us want, but it means it replaces existing currency and to do this requires government approval. i think that will never happen, the government will never let bitcoin become a currency for people to freely use


bitcoin will forever be decentralized but government regulations will create difficulties for us. decentralized exchanges or mixers are also created by people or an organization, everything is under the control of the government, they can also control like the government did with Tornado Cash, they can arrest the head, shut down the website...that's what i'm afraid of

First of all, I'd argue that the 'full experience' doesn't involve fiat transfers. The 'full / ideal Bitcoin experience' would be earning and spending BTC without need to exchange.
Secondly, liquidity on centralized exchanges is often completely faked or meaningless anyway. You gain nothing as a Bitcoin user, whether there are 1000 day-trades per second or 2000.

On Bisq, I can usually find or create an offer which is taken within a few hours (e.g. overnight), in the BTCEUR market. That's easily good enough.

Actually, there are much more funds stolen from (by (!!)) centralized exchanges due to random claims of 'taint' or similar. Never had such issues on Bisq, on the other hand.
Decentralized P2P exchanges don't need regulations like the ones you describe, as they don't even hold your funds. Cut out the middleman!

Why even use Bitcoin if you don't hold it yourself?

I would; if they make it a crime to own BTC, it will become very hard to meaningfully use it, acquire more of it or sell it. No matter whether the nodes are still decentralized.

Bitcoin allows us to have a good level of privacy, it's just that it really depends on the user. A person who wants to maintain his privacy with bitcoins will always avoid centralized exchanges or platforms that jeopardize his privacy, but privacy will be of little value when the user concerned does not care.

The government along with its regulation of bitcoin does not want this decentralization to help people have a high level of financial privacy. You're right that they want everything to be transparent, but at the end of the day privacy is an individual choice. Maintaining privacy and fighting for it are very different, we can minimize being vigilant about privacy while it is difficult to change the attitude of the government about the regulations that are made as is the KYC obligation of every user on government licensed exchanges.

Here on our country on which they had really have that kind of warning about crypto.Pretty sure that they are really that indeed looking on how it would be taxed but turns out that they cant able to do so.
They do even having those insights on banning out Binance which is totally absurd. Government doesnt really like on something that they cant really be able to control nor its citizens to bypass about
taxes and this is why some situations where they do become desperate but we know that there's nothing they could do when it comes on tracing up everything.
Crypto community did really become big because of its decentralized and anonymity aspects which it isnt surprising that we had become this big.

It's surprising to me that this is just hitting g Canada just now or perhaps the news just got out of late. This has been an issue in Nigeria dating back a year ago when the CBN placed a ban on cryptos and crypto related transactions. I think the ba is still in effect partially and they are still trying to keep a trace on accounts and banks involed in crypto related transactions. Even on the p2p network, there exists certain loopholes to raise suspicions with banks as to what transactions might be crypto related or note.

Most of the traces are always between previously note accounts, remarks on transactions and sometimes, these banks and its agents registers with an exchange to trade on p2p just to fish out an account. The pressure is less now but still, discretion is advised.

Privacy is a vital part of human existence as everyone craves it in carry out one task or the other. Finance should be no different.

Liquidity becomes less of a problem over time. DEXes have been abruptly rising recently. Also, ease of use is an invalid argument. Have you ever used a DEX, such as Bisq? I can guarantee you that they've done pretty good job with the UI.

Well, yeah. It's your money, you're responsibility.

There's no entity that can safeguard your own money better than you can. Unless you don't take the necessary protection measures of course. But, again: Your money means your responsibility. It's your duty to take those measures.

You know that if Coinbase bankrupts you don't get anything, right? You have no insurance. And that's before we even mention the frequent hacks since Coinbase is a central point of hacker's desire.

I guess there will always be a market for custodianship of cash, fiat, gold, you name it. So, probably also for Bitcoin. But you definitely don't get nearly all of Bitcoin's benefits that way.
It happened to me countless times that I need to use fiat on a weekend, late at night or during a holiday; payments were blocked by the bank and I couldn't reach anyone to resolve the issue. Meanwhile with Bitcoin, all those instances would have been a painless, 10 minute wait (at worst an hour if I'm cheaping out on fees).
That's the difference that makes you miss out on a great deal on flights or delays the arrival of ordered goods by one or more days.
If you give your BTC to custodians, you will run into the same issues again; but if you can accept this + the risk of them running away with your funds, as you deem yourself incapable of protecting seed phrases, Bitcoin gives you the freedom to do it.

Some exchanges actually have 'bank' status, meaning when they go bankrupt, some amount per customer is exempt from the liquidation sum. It should be in the range of $100-200k or 100-200k€ per customer. As of how well that works, I don't know. There have been exit scams / 'hacks' in the past where people got nothing, for sure; it would be interesting to know whether a 'bank exchange' went bankrupt and refunded everyone.

Sure, but it's so ironic, because unlike fiat and gold, bitcoin was made for this very purpose, that is cutting off intermediaries in transactions. It might have some benefits, even that way, but think that if everybody thought likewise, it would have no benefits at all. Control of monetary policy would be down to exchanges' administrators, which is the only benefit left from forfeiting self-custody.

Can you name me one? Most I know have no such policy. And they shouldn't, in my opinion. Handing over your electronic cash to a company because you don't trust yourself to hold it, at the same time that's the very essence of the thing you're handing over, is not an attitude I would want from the cryptocurrency communities.

Also, how can a company pay out their customers if they don't have money?

Agree on everything!

It's called 'deposit insurance' or 'protection of deposits'; for instance:

I can't find it right now but I remember that before this, they (or some other exchange) had 'regular' FDIC insurance of up to $100,000 or even $250,000. However it's possible that this only covers your fiat balance.

That I don't know! :D I guess if it only covers the fiat balance, they're just forced to maintain 100% reserves of fiat balances, while being allowed to do what they want with the cryptocurrencies they sell.