What will happen if bitcoin transactions became anonymous like Monero tomorrow?

[WatChe]

The government is still very much against decentralised Bitcoin which doesn't give government or any institute complete visibility of what's going on inside the Bitcoin network. The governments only have soft stance on centralised Bitcoin, like the one that goes through CEX with KYC.

Bitcoin is pseudonymous in nature where no one can link a Bitcoin address with real world ID of the owner unless the owner himself do that. To OP question, as I said government still has zero tolerance towards decentralised Bitcoin and the stance will remain same in case the transaction become identical like Monero.   

[Forsyth Jones]

It would be a tempting idea, but you know something?, until mid-2013, when Silk Road was at its peak, Bitcoin was believed to be anonymous, as no address is associated with the identity of the holder of the funds, unless they leave a trail on the internet that would allow data cross-referencing. Today, advanced software has made transaction traceability very easy. However, if users want a deeper level of privacy, they can use privacy methods like mixers or coinjoins, or exchange them for more privacy-focused coins like Monero.

Today, everything is different. Countries, especially repressive ones, invest in technology, software, and specialized public officials to improve traceability in the Bitcoin network and other coins. However, they still face some difficulties, even if these users don't use mixers. If you're not careful with your UTXOs, you could end up revealing your identity, depending on what you do with them.

I honestly don't know what would happen if Bitcoin were as private as Monero, but governments, especially repressive countries, certainly wouldn't like it, and it would be persecuted more than it has been in the past and still is.

Privacy is necessary. It's still possible to achieve it with Bitcoin, but as I said, you must be cautious. If you want something with more guaranteed privacy, use Monero and other private coins.

The positive aspect that matters to me is its decentralization, this was the technological disruption that Bitcoin brought. We didn't have transparency in fiat money. Even though Bitcoin isn't as private as Monero, we know that Bitcoin follows the consensus established by the nodes.

[promise444c5]

Privacy is necessary. It's still possible to achieve it with Bitcoin, but as I said, you must be cautious. If you want something with more guaranteed privacy, use Monero and other private coins.

The positive aspect that matters to me is its decentralization, this was the technological disruption that Bitcoin brought. We didn't have transparency in fiat money. Even though Bitcoin isn't as private as Monero, we know that Bitcoin follows the consensus established by the nodes.

what other private coins? I’m just curious because the only one i seem to know is just Monero.
Privacy is necessary for sure but I think people seem to choose what aspect of privacy they need, for some it’s public while for some it’s both public and government, depending on what they are hiding but just as you’ve also mentioned what really matters the most is the decentralization ( this is what I also like the most about it)

[Forsyth Jones]

what other private coins? I’m just curious because the only one i seem to know is just Monero.
Privacy is necessary for sure but I think people seem to choose what aspect of privacy they need, for some it’s public while for some it’s both public and government, depending on what they are hiding but just as you’ve also mentioned what really matters the most is the decentralization ( this is what I also like the most about it)

There are several others besides Monero, with Monero being the best known, but we can list Monero, Zcash... The disadvantage of these coins is that they're not as resilient as Bitcoin. Until recently, Monero suffered a 51% attack. Many believed it to be the end of the coin, but I believe this is the test of resilience a currency needs. That said, it won't be what will bring down Monero.

Below is a list of other private coins besides Monero: https://coinmarketcap.com/pt-br/view/privacy/

[CTO114]

Bitcoin in it's right has somewhat of an anonymous nature. But transactions are recorded and tracked even with numbers. Hard to tell if we would see it adopt 100% anonymousity. Then again anything can be possible

[gogarza63@hotmail.com]

Privacy is being confused sometimes with anonymity. Privacy is absolutely a driving force mentioned early on in Bitcoin history and built in for your viewing pleasure. Anonymity necessary for some, is not a core value of Bitcoin. Solutions are available. How dare those? lol Like Monero? xoxo. Bitcoin drives Monero. Bitcoin forever now, will decide. "If he dies, he dies." Ivan Drago.

[BIT-BENDER]

Do you think Bitcoin does not have it privacy already made available, the problem issue that many don't know how they will acheive the maximum anonymity

So , how you feel this problem can be solved ?

What problem? The replier was letting you know there are ways to achieve top level anonymity using Bitcoin, so it is actually not a problem because if you do your research well you will understand that Bitcoin supports privacy and anonymity too.
Bitcoin doesn't care about how government feel or think, Bitcoin is decentralised and not understand any government control.

[edroi]

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 ?

i think both good and bad things would happen.. on one side a lot of people who care about privacy would rush to use it & demand could grow but on the other side governments don’t usually like money they can’t track so they might react with tougher rules or restrictions... in the end it would probably make bitcoin even more valuable for those who believe in freedom and privacy but also more risky because of possible legal pressure

[WhoYouCantKill]

When Bitcoin have Monero-level anonymous, there would be a spike in demand from those who prefer privacy, still at that time the government may surely reply using big restrictions or may totally suspension on the use by channels regulated. Such tension might cause short-term pleasure and the price rise upward, then on the long-term may harm its adoption in the mainstream finance making it lot difficult to be used publicly.

[NotFuzzyWarm]

Not going to happen. What part of BTC using a public blockchain do you not understand? Change that and it would become just another crapcoin fork and no longer would be Bitcoin.

[Abiky]

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 ?

If Bitcoin became anonymous like Monero, it would face huge backlash from mainstream governments and even "Wall Street". Spot ETFs would be taken down, crashing along market prices with them. The backlash would be nothing more than pure hate against privacy. Without a way to know the number of coins you have, it would be impossible to enforce taxation. Governments will come up with an excuse that Bitcoin's newly-adopted privacy features will encourage money laundering, tax evasion, and terrorist financing. But we all know the real intentions behind this.

For Bitcoin to obtain the approval of the regulators, it must remain as is. You can still obtain privacy on Bitcoin via separate, optional solutions (mixers, CoinJoin, switching to XMR, etc). I'm surprised that Monero is still listed on centralized exchanges, when many have closed their doors (de-listed) to it. If governments keep pushing, all CEXs would eventually cease trading XMR. Only DEXs will remain. The same fate awaits BTC if it becomes truly-private. Maybe that's a good sign, because Bitcoin will become more decentralized? No matter how you see it, government cooperation is necessary for the healthy growth of the industry. Otherwise, setbacks (obstacles) will prevent market prices from going to the moon. It's impossible to predict what will happen in the future, so I'd hope for the best.

[cr1776]

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 ?

Long term it would be a good thing, short term (or long term) the impact on price is unknown.   From a usage and freedom perspective increased privacy is important.

[Kruw]

Bitcoin transactions are anonymous when you coinjoin. Wasabi Wallet & JoinMarket won Bitcointalk's coinjoin bounty - https://bitcointalk.org/index.php?topic=279249.msg51275314#msg51275314