Bitcoin 'separates State from money' - as John Lennon's son outlines crypto benefits - Governments are going to be the greatest driver of Bitcoin adoption over the next couple of years. They are basically setting the stage for it to become the global reserve currency (It's already wildly successful). After scarcity & money printing/manipulation, the destruction of cash is probably my 3rd most bullish reason to hodl. When you take cash away from people you are taking their last bit of privacy, freedom & control. Cash is the reason many people are surviving day-to-day. It's the last tax-free-haven that gives people plausible deniability - you cannot trace cash. Bitcoin is not anonymous, it is pseudonymous (can be traced using your IP), however your ID isn't attached; KYC reattaches it. Although, a few hops after the KYC address, gets harder to prove. There's a level of integrity from Bitcoin users to correctly report on their taxes.
The Lightning Network is pretty damn private & extremely fast. It is Bitcoin's Visa. You cannot KYC the Lightning Network as there is no public LEDGER to trace transactions. Like TOR, Lightning is onion routed. The only privacy concern would be your wallet IP (not hard to get around). I'm betting most Lightning wallets will come with TOR by default soon anyway. As the Lightning Network's user experience improves, more people are going to flock to Bitcoin - it only makes sense.
As more & more people adopt Bitcoin & the Lightning Network, a Bitcoin-Circular-Economy will form outside of state control. This will kill revenues & in the end, probably massively shrink governments or create many new ones. Maybe they will be more incentivized to make taxes voluntary. Personally, if taxes weren't forced upon me tomorrow & I knew exactly where the money was going - I would probably happily chip in. When you have a decent understanding how the money system works - tax time makes you sick. Bitcoin is going to incentivize the most corrupt people in the world to become honest. I'm positive things will change for the better over the next 5-10 years.
On top of all this, KYC is counter-productive & it only does more damage to the people. Identity theft is the number one crime these days; it is destroying lives. Fiat (dollars, euros, yen) is the gateway to this crime. All these legacy currencies have your identity attached to them; If someone hijacks your ID, they have full control of your funds & your life. This isn't an issue in Bitcoin. You could steal someone's ID, but if don't have their private key, you're not getting their money. Bitcoin encourages hard work; these criminals will have to start looking for honest work. Politicians will have to run better campaigns & be much more competitive. They can't print more money in Bitcoin to fund their promises in order to gain popularity.
I'm not saying don't pay taxes (even though it's straight up theft), I'm betting people will start doing it anyway. Governments want to destroy cash in the hopes to track & audit the system better for tax purposes/fear (They will tell you it's for the safety of the people - it's not), the people will fight back. Many people use cash to evade taxes now, soon Bitcoin will become their new weapon of choice. When everyone jumps, they will become powerless very quickly. The cost to enforce this disruptive tech is too high.
If you're comfortable making transactions, I'd recommend to start playing with CoinJoin (Mix your coins through Wasabi/Whirlpool) & then open lightning channels on these freshly mixed coins. Bitcoin should be your first priority, privacy second. It's a basic human right. The narrative that privacy is used by criminals is clearly a government narrative. More privacy equals less control, they can't have this. They need to drain every last cent to pay the debt back- it can't be paid back. The bubble will inevitably pop. Bitcoin is the reset, it will hopefully reduce the likelihood of a war.
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