Yes, all btc transactions can be seen and the flow of ''btc funds'' can be followed from start to finish, that's true, but one thing needs to be clarified. The identity of the end user can only be found out by tax and other authorities if the user sold btc funds for fiat and provided their personal information, ID, to the crypto exchange.
If btc was sold to a private person, or at an ATM, for example, or in some other way without sharing personal information, then it can't be said that the anonymity of the end user is at risk.
Experienced crypto users already know this, of course, but some users probably want their transaction data to be known to their country's tax authorities for tax exemptions, for example.
As far as Bitcoin transaction is concerned, anything that has happened on chain can't be identify to anybody until it's link to one identity and one of the common way is through the centralized exchanges. This is why some people are discourage to do kcy or use centralized exchanges, before you can use any of their services you have to be verified, this is against some People's believe as far as privacy is concerned.
Left to the user, if you don't mind doing Kyc you can do transaction with Bitcoin and get it link to you since you will have to file for tax and some other things but as for other people that doesn't consent to Kyc, you can use Bitcoin without revealing your identity, which ever you chose the network is available for everyone.
Yes, I agree with you.
It all comes down to the reasons and motivations for why we are in crypto. For some crypto users, anonymity and privacy are very important and they will find crypto exchanges without kyc, while other users, for whom it is important to be able to prove the origin of their funds to the tax authorities of their country, will do kyc and then submit a tax return.
In my country, we have a very good tax law that allows us not to pay tax on crypto earnings if we have held crypto assets for at least 2 years and traded with these assets.
When you have such a legal situation, of course, there is no reason to hide your identity and later fear that if you spend a lot, the tax authorities will start investigating the origin of your assets.
It is much easier to simply do kyc and submit a tax return, and thus avoid paying taxes and get the opportunity to spend crypto assets freely and without fear.
