How does Bitcoin stay popular as strict KYC/AML rules and natured ecosystem?

[arzuo]

Some have also explored privacy focused alternatives.
As KYC and AML regulations have tightened, many privacy-conscious users have not stopped using Bitcoin. Instead, they have taken additional steps to maintain financial privacy while continuing to use the BTC network.

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

However, strict KYC and AML regulations have not halted Bitcoin adoption. BTC has evolved into a dual natured @ ecosystem.

This dichotomy reflects the inherent flexibility of Bitcoin’s design, which accommodates both regulated participation and decentralized autonomy. This dynamic continues to shape the Bitcoin ecosystem, making it a more structured yet resilient landscape.

[notocactus]

Some have also explored privacy focused alternatives.
As KYC and AML regulations have tightened, many privacy-conscious users have not stopped using Bitcoin. Instead, they have taken additional steps to maintain financial privacy while continuing to use the BTC network.

You can use the Bitcoin blockchain without any further thing to do so your opinion is quite inaccurate. It is not like if you are not deep dive into technical things, you will no longer be able to use Bitcoin blockchain. Surely with more demand on privacy, you must learn more for your better knowledge and practice but it's your choice for your personal interest.

If you can learn, you can use Bitcoin well enough.
Bitcoin privacy resources.
Bitcoin privacy [Guide].
Protect your privacy.

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

Are you really sure about this?

Tech guys use Bitcoin in their technical ways, while non-technical people and newbies will use Bitcoin in their own ways that are more simple than tech guys. Everyone can use Bitcoin blockchain that is easy but depends on their need and concern on privacy, they will have to learn using different features on Bitcoin blockchain, with Bitcoin non custodial wallets, Coinjoin transactions and even commercial mixers.

[melinoe]

Because with AML or KYC or not, you can still use BTC properly the way you want. End of the story.

[pooya87]

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

This part needs more explanation and hard data for us to see why you said this.

The way I see it, the "casual users" are mostly interested in the price not the privacy and they don't really think about KYC stuff since they use centralized exchanges anyways. The rest already know of ways to improve their privacy but also you have to keep in mind that such things as KYC can only be enforced on centralized services not on bitcoin itself. In other words bitcoin can still provide you with the same level of privacy as its early days if you use it correctly.

[devlin85]

Some have also explored privacy focused alternatives.
As KYC and AML regulations have tightened, many privacy-conscious users have not stopped using Bitcoin. Instead, they have taken additional steps to maintain financial privacy while continuing to use the BTC network.

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

However, strict KYC and AML regulations have not halted Bitcoin adoption. BTC has evolved into a dual natured @ ecosystem.

This dichotomy reflects the inherent flexibility of Bitcoin’s design, which accommodates both regulated participation and decentralized autonomy. This dynamic continues to shape the Bitcoin ecosystem, making it a more structured yet resilient landscape.

Yes agreed. KYC didnt kill BTC, it just split the vibes.
Normies went regulated, privacy folks went stealth.
Some newbies got scared off, but adoption kept rolling.
Bitcoin just adapted - regulated on one side, sovereign on the other.
Same network, different paths.

[Furball808]

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

This part needs more explanation and hard data for us to see why you said this.

The way I see it, the "casual users" are mostly interested in the price not the privacy and they don't really think about KYC stuff since they use centralized exchanges anyways. The rest already know of ways to improve their privacy but also you have to keep in mind that such things as KYC can only be enforced on centralized services not on bitcoin itself. In other words bitcoin can still provide you with the same level of privacy as its early days if you use it correctly.

Most likely they’re not really using bitcoin for its privacy so when things got stricter they didn’t want to risk anything because they don’t see it worth the risk. But those who understand how much bitcoin helps us, they still continue to use bitcoin.

[Z-tight]

Most likely they’re not really using bitcoin for its privacy so when things got stricter they didn’t want to risk anything because they don’t see it worth the risk. But those who understand how much bitcoin helps us, they still continue to use bitcoin.

When things got stricter on what front? Regulation? The average user does not care about regulation, they don't care about passing kyc on 5 different exchanges, so how do you even believe that they would stop using BTC on that basis, when they understand that they can make money off of its volatility.

Bitcoin just adapted - regulated on one side, sovereign on the other.

BTC didn't adapt. Nothing changed in the BTC network. Do not mistake the actions of crypto asset providers to that of BTC. BTC is decentralized and cannot be regulated in itself.

[tbct_mt2]

BTC didn't adapt. Nothing changed in the BTC network. Do not mistake the actions of crypto asset providers to that of BTC. BTC is decentralized and cannot be regulated in itself.

Bitcoin is Bitcoin, it's unchanged but Bitcoin network has changed and become bigger with time in total hashrate as well as more decentralized with more Bitcoin full nodes and node distribution globally. It's adaptation from Bitcoin community that makes Bitcoin blockchain stronger and more secure with time, while as simply Bitcoin users, we can enjoy this growth of Bitcoin network.

Bitcoin network won't be broken down by governments and it's the fact that is disliked by governments globally. Bitcoin has already been through its hardest times as after Bitcoin Spot ETF approvals in the USA, Bitcoin has been officially recognized by the USA government, to make it more legal and bring it more nearly to traditional market.

With this growth, Bitcoin will ony become stronger and less likely die while governments will change themselves and their regulations, no longer to kill Bitcoin but to milk as most money as possible from their citizens with Bitcoin related activities.

[Ucy]

Well, the idea behind KYC and AML is quite reasonable but only done wrongly. So the Bitcoin Community is working on a design that still achieve the goals of kyc/AML, when necessary, without sacrificing on real privacy or without handing over your sensitive data to strangers in typically risky manner. People have to be really careful for now until this is achieved.
We however advice against giving up your bitcoin custody to other people unless you still feel like a kid who needs a human guardian to control and use bitcoins for him.

The right way to truely own, use and benefit from Bitcoin is to do it in decentralized p2p manner. The main reasons certain people use it in centralized or so called regulated manner is for the convenience sake, or to have other people help secure/control their coins for them, or to benefit from the price swings via trading. But this is not part of Bitcoin design neither is it part of the so called Bitcoin evolution. The only real path for Bitcoin is decentralized p2p usage, once you deviate from that you start dealing with something similar to fiat, which is not a good thing

[Donneski]

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

However, strict KYC and AML regulations have not halted Bitcoin adoption. BTC has evolved into a dual natured @ ecosystem.

I’m not fully convinced that casual or new users were discouraged entirely. I'm not doubting the fact that some people were definitely put off by KYC and extra steps but many still entered Bitcoin through regulated apps and exchanges because convenience mattered more to them at the beginning. Most newbies don’t start by thinking deeply about privacy, privacy usually becomes a thing for them later as they learn more about bitcoin.

[Cryptomultiplier]

Bitcoin has had to prove itself and to the world that it is what it is, a currency and an asset that can be on a balance sheet at the end of the day alongside stocks and bonds and other assets that count, despite strict KYC/AML rules. Besides tech guys use run their own nodes on the Blockchain network to truly own and validate Bitcoin, without needing CEX and other services that must obey KYC/AML policies. CEX is like a store where we go to get the Bitcoin.

From the mathematical schematics, to the coding, to the developers and miners, to the systems and applications it has created and enabled creation of, to the world and to the investor, Bitcoin has shown its network is secure, its store of value is and will always be untouched by ID checks.
It is popular because we trust it more than commercial traditional banking and it is driving technological and economic breakthroughs for investors and in sectors that embrace its technology.

[un_rank]

This dichotomy reflects the inherent flexibility of Bitcoin’s design, which accommodates both regulated participation and decentralized autonomy.

Bitcoin has not evolved, it has always been an entirely private network and remains the same even now. It is not flexible either to accommodate regulation, the network is entirely resistant to any form of centralization, but it also offers complete freedom, you can choose to take your bitcoins off the network and use third party channels that eliminate your privacy.

- Jay -

[PrivacyG]

In my opinion.  Bitcoin would have died if it was not a deflationary Asset with a lot of support from Cypherpunks particularly due to these Know Your Customer, Anti Money Laundering and other similar rules.

If you consider strictly what you can do with Bitcoin by following every single word of the law, I doubt any body would see any value in Bitcoin.  Because Fiat offers the same thing and it has been 'tested' for a long while.  People are already scanning their biometrics for their Banking.  They already share more information than they should when spending larger amounts of Money.  Why would they do the same thing for Bitcoin when they do not even care if it is Decentralized or not?  Few people understand that Fiat is a complete Scam and they would not understand why Bitcoin would have value in many eyes of ours even if it was not deflationary.  BUT,

As we all probably know, most of the Privacy solutions have little usage when compared to other main stream anti Privacy solutions.  Do people store their files on an encrypted drive or do they prefer the encrypted cloud solution?  Do people buy Linux phones or do they prefer the Apple jail?  Do they use Whisper, Signal, even Telegram or do they use the Software written by corporations like Meta.

There fore, Bitcoin would have been used by no body else but Cypherpunks if it was not offering a lot of return.  I do not know if Satoshi envisioned this to be the future but the way he structured its economics is amazing.  I wish a lot of people used Bitcoin like they should.  No Third Parties.  No Custodians.  Not to hold only to sell a month later every Satoshi of theirs for Fiat.  But most of them do not.  However they stick to Bitcoin for the return, which maybe makes Bitcoin harder to control.

It would be easy to put Bitcoin down when only Cypherpunks see value in it.  The number of punks would be little and no body else would care after a week or two.  But if many people join Bitcoin and particularly stay in it to get better living conditions at the end of the day, it will be difficult to push them away from it or to put it down.  This is why I believe this is both good and bad for it.  It is very bad that only a handful of people actually use it the way it was intended to, but for that handful of people it is amazing that millions of others are keeping it alive.

Correct me if you believe I am wrong.

[Yamane_Keto]

Apart from this forum and some technical forums, I don't see any fear of KYC regulations or even thinking about withdrawing Bitcoin from trading platforms. On the contrary, exchanges that require data and deal with governments are more reliable than an anonymous exchange that does not require any data. Bitcoin's ease of use and decentralization make it adaptable to all these regulatory changes.

[ColdLava40]

Some have also explored privacy focused alternatives.
As KYC and AML regulations have tightened, many privacy-conscious users have not stopped using Bitcoin. Instead, they have taken additional steps to maintain financial privacy while continuing to use the BTC network.

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

However, strict KYC and AML regulations have not halted Bitcoin adoption. BTC has evolved into a dual natured @ ecosystem.

Kyc? Aml? Only people who wish to go through those processes just to acquire their bitcoins. It's not something that's written somewhere on the bitcoin network as compulsory.

I will agree on the part you said bitcoin has become a dual natured ecosystem. Bitcoin was not designed to have anything in relation with centralised systems. But due to regulations, many bitcoin investors are forced to undergo kyc on centralised exchanges which seems to be the most common way to acquire it.

But it doesn't end there. Regardless of what regulations are forced, bitcoin will still remain decentralised...You can still choose to go full privacy on the bitcoin network by using privacy tools right after acquiring your bitcoins. Or you simply purchase them on a few number of decentralised exchanges.

Kyc has in no way affected the rate of adoption of bitcoin. It actually increased it instead..

[PrivacyG]

Kyc? Aml? Only people who wish to go through those processes just to acquire their bitcoins. It's not something that's written somewhere on the bitcoin network as compulsory.

It is not compulsory.  Most people would however rather not break the law only to have some Bitcoin.

[Lida93]

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

This part needs more explanation and hard data for us to see why you said this.

The way I see it, the "casual users" are mostly interested in the price not the privacy and they don't really think about KYC stuff since they use centralized exchanges anyways. The rest already know of ways to improve their privacy but also you have to keep in mind that such things as KYC can only be enforced on centralized services not on bitcoin itself. In other words bitcoin can still provide you with the same level of privacy as its early days if you use it correctly.

Many older (OG's) users of bitcoin are even the ones who got into using bitcoin primarily due to it's privacy feature before attention on the financial profit side of it. Unlike what the majority of the new entrants (casual users) whose predominant aim is profit making from bitcoin with little or no much concerns for privacy it provides on its own.

A decade before now most people that adopted bitcoin did that because they saw an invention that can offer them financial privacy away from the sensorship of the centralized system which they got fed up with. At least by that early period the level of privacy attack using KYC and AML  wasn't that tightened  as it's made today. Instead a lot of us casual users appears not to find it worrisome as they find it with whenever bitcoin price dipping and taking them out of profit.

[Findingnemo]

Kyc? Aml? Only people who wish to go through those processes just to acquire their bitcoins. It's not something that's written somewhere on the bitcoin network as compulsory.

It is not compulsory.  Most people would however rather not break the law only to have some Bitcoin.

Often going through the system is the only option for most of the retail users because privacy comes with a cost and not everyone can afford that so they are ready to risk their privacy to have a bit of bitcoin for their future.

And bitcoin is never designed to be anonymous and user who preferred completely anonymity should not used bitcoin at all, it's just we were enjoying the earliest days when no one cared what is bitcoin but now it is too big and many eyes on the system but bitcoin is still the most decentralized crypto which is why people trust over the anonymous coins.

[blockman]

During this time, many casual, non-technical, or new users  were discouraged from using Bitcoin entirely.

Not at all although being dismayed is only happening when it's about related to centralized exchange services that we're using when we're about to trade. But with bitcoin alone and its features, there's no requirement for that and we're free to use it.

This dynamic continues to shape the Bitcoin ecosystem, making it a more structured yet resilient landscape.

And that's one of its beauty. Despite that kyc measures that are being enforced if we're selling it off exchanges that are centralized, the adoption continues and I think that people are no longer concerned about that. Because whenever people hear about bitcoin, what comes to their mind is its price.

[Nathrixxx]

Some have also explored privacy focused alternatives.
As KYC and AML regulations have tightened, many privacy-conscious users have not stopped using Bitcoin. Instead, they have taken additional steps to maintain financial privacy while continuing to use the BTC network.

Bitcoin was not initially created for us to engage using it through the centralized exchanges, but many have been unaware of how they can have and maintain maximum privacy in using it without involving custodial storage.

But today, we ha e the privilege of being in a forum like his where every information about how we can use Bitcoin are being discussed and we can know more about the necessary information needed for this same privacy to be achieved, its not possible that we left were we are coming from because of privacy and regulatory challenge and still faces same thing in Bitcoin network, except we don't know what we are doing.