You are forgetting one thing. You want to do everything on-chain forever. I expect that won't be the case with bitcoin.
Off-chain solution are only matter of time and will happen whether we like them or not.
In fact, the question is not so much "on chain" or "off chain" ; that's only a technical matter. The question is:
what use case can crypto in general, and bitcoin in particular, bring to the mainstream that they didn't already got solved ? I don't see any mainstream use case for these things, because the "law abiding citizen" has already all he needs for his payments. You can buy stuff on the internet already with credit cards. You can send money where-ever you want with your bank. *in practice* bitcoin or most crypto don't help in anything a mainstream, law-abiding citizen may want to do with money, because you first have to obtain crypto through an exchange (a kind of dangerous bank on the internet where you can lose your money, where you have to send money from your actual bank), then do your payments, and don't make a mistake because there's no recourse. It is only in those cases where it is difficult, expensive, dangerous or impossible to do the payment with your bank directly, that you go through the hassle of paying an exchange with your bank, withdraw the coins, and then pay using them. There ARE such cases, but it is not to pay for the rent, to buy a car, to buy your groceries, to book a trip, to pay for a cab, .... where paying with a credit card works perfectly, and in any case with a lot less hassle than with crypto.
In all the useful cases, you certainly *don't* want the thing you're using to be like a bank, with legal control, transparency etc... because in almost all those cases, your normal bank can do the thing too, and you get legal protection on top of it.
The only "general use case" I can think of crypto, is when the local fiat system will be disfunctional, but you can for sure count on the fact that in those cases, there will be a serious crack-down on crypto ; and most probably, it will be extremely dangerous to try to pay your groceries with crypto, unless on top of that, the rest of government control crumbles. I wonder whether the internet will continue to function in such areas.
Bitcoin will evolve, it won't be as anonymous as before, it will be quite transparent, but that is the price we shall pay for mass adoption.
We can't have private and anonymous coin which will be accepted and regulated by government. It won't happen.
Bitcoin has never been anonymous, but has been considered like that by error. If it is accepted and regulated by government, one has already a working system, that's my point. I really don't see the use of "regulated crypto". That's a contradiction, which has strictly no use case.
The only mainstream use case I see is "greater fool game". If you hodl bitcoins or other crypto because "the price will increase because more people will buy it", then the last layer of users buying it will not see a price increase any more. To what greater fools will they sell then ?
