[Question] If bitcoin becomes everyday money

[New Judgement]

Since we’re now in the imaginary realm where things ought to be the way it was supposed to be with bitcoin. Remember that security is one thing you will hear the most when you’re new in this space, so originally idea was that if you take the security of your assets very serious, hackers can’t attack you and if you you are not attacked and no bitcoin is stolen, there will be no need to track anyone. I guess that is why there was no clear guidelines on how to track criminals if such were to happen.

[Tamaperdana]

I don't know if this has been discussed before, if so I'll just lock the thread.

The original purpose of bitcoin is to be able to transact peer to peer without intermediaries or centralised authorities. Lets imagine an ideal world where bitcoin is truly used in a decentralised manner (no regulated exchanges/merchants) and is accepted as everyday money. How will attackers be tracked, identified and penalised if they steal coins from others. Is there any possible way to track the attackers since KYC is not required to initiate a transaction?

I am asking because centralised exchanges were not part of the original plan. We are supposed practice self custody for the original purpose of bitcoin to be achieved. Run a full node and manage our bitcoin client (Bitcoin core and others) instead of relying on CEX. I am particularly concerned how identifying and penalising fraudsters will be possible in such an ideal world.

While it's true that centralized exchanges weren't the original plan,, they're still incredibly necessary today, and they've really helped Bitcoin become more widely known. Imagine if centralized exchanges didn't exist,, who would you buy Bitcoin from? Sometimes,, even the people around us don't know what Bitcoin is. So, if we wanted to buy Bitcoin, we'd probably have to find someone who owned it. That's quite complicated,, in my personal opinion.

But with centralized exchanges like this, I think it really makes things easier for everyone. I wouldn't say centralized exchanges are bad, because they do make things easier, although KYC is indeed compromised. Nevertheless, it's clearly a necessary security measure. On a large centralized exchange like Binance, we're bound to buy and sell Bitcoin with anyone, anywhere. So, security measures are clearly essential. That's why, even though Bitcoin is truly decentralized, when it comes to transactions, I think using a centralized exchange is fine, as it doesn't change Bitcoin's decentralized value.

[The Cryptovator]

You can’t trace all the hackers who maintain the privacy and don’t use any centralised platform to deal with it where they need to do KYC. You definitely could trace the transaction on the blockchain but can’t trace the person who was involved with this kind of hacking. They simply would mix their funds from the mixer and from some other platform where privacy has been maintained.

If you want to use Bitcoin like everyday money, then it would be quite a complicated process without a centralised platform. Because transaction duration and transaction fees are matters for Bitcoin payments. If the government doesn't support or launch a system for the payment, then it won’t be everyday money. To become everyday money, then it should be accepted everywhere.

[hmbdofficial]

You can’t trace all the hackers who maintain the privacy and don’t use any centralised platform to deal with it where they need to do KYC. You definitely could trace the transaction on the blockchain but can’t trace the person who was involved with this kind of hacking. They simply would mix their funds from the mixer and from some other platform where privacy has been maintained.

If you want to use Bitcoin like everyday money, then it would be quite a complicated process without a centralised platform. Because transaction duration and transaction fees are matters for Bitcoin payments. If the government doesn't support or launch a system for the payment, then it won’t be everyday money. To become everyday money, then it should be accepted everywhere.

Exactly, i so much agree with the point you made, and that is why it will only take a very low level hacker to steal coin and move them to a centralised plaform. some of this centralised platforms have a way of setting them up, they will allow them to move coin in and not request for KYC until you want to withdraw and spend those coin. that's why in many occasion, hackers steal coin and abandon it on the centralised wallet. because it either they were trapped that they think the platform doesn't requires KYC initially.
bitcoin cant be every day money for so many reasons i can mention; its volatility, pseudonymity, decentralization. and for bitcoin to become everyday money, then i think decentralization will even be defeated.

[Nathrixxx]

This is what we wanted already: seeing Bitcoin become the mainstream payment currency and valuable asset that has data features and advantages over what Fiat currency can offer.

Living under a centralized network is what many of us aspire to have because we need freedom over how we run our financial economy, but we also know that this is something our government may not likely permit us to achieve.

Don't be surprised that various attacks are coming against the Bitcoin network because centralized authorities will not be able to know or have influence over our financial standards, but anyone that wanted to participate in this change to a new area has to adopt Bitcoin for their privacy, financial control, and freedom.

[Nanga Parbat]

First, Bitcoin was not created to be a replacement for fiat currency but as a digital currency that makes transactions easier for users. The responsibility lies entirely with the user or owner.
If Bitcoin were to become an everyday currency, it’s already happening—with the understanding that anyone who wants to use Bitcoin is free to do so if they choose not to use fiat currency. You know this is happening in El Salvador.

Second, just like any monetary transaction, Bitcoin transactions are not anonymous; anyone can track them as long as they have the address. All transactions are recorded. Nothing is secret.

You have a valid point about Bitcoin and its use because there are too many theories about this, mostly created for just having no relation to Bitcoin, but people who are not happy with this always want to stay negative. Bitcoin was first used for digital transactions, but now it has turned into a blessing with too many things related to this. Everyone is having benefits, confidence and use increasing, and it's helping out. Here, the important thing is that transactions have never been anonymous, and things are easily trackable nothing is secret because with the knowledge and help of blockchain, it's easily traceable. This makes things more interesting, but one thing is sure it's never going to replace fiat currency because both have their own benefits. This argument needs to be ended.

[Dareo]

You can read this thread to find out whether Bitcoin will be accepted as an everyday currency or not : Can Bitcoin ever become its own unit of value?

And speaking of tracking, even without KYC Bitcoin transactions are not completely untraceable. Every confirmed transaction is on the public blockchain, so everyone can see how coins are moving from one address to another. The real problem is associating the identity of a real person with the address. If a stolen BTC later goes to a place where the identity is revealed, it is possible to get clues from there. So it is not that it will be impossible to catch a scammer even if there is no CEX. Rather, due to the pseudonymous nature of Bitcoin, tracking is possible, but identification will not always be easy, if that user uses any mixing tools.