I would not write anything off but I do believe it will be much harder to get people to part with their bitcoin. Unlike gold bitcoin is just private keys. You can store it so many different ways. Also in a digital age people would get on social media and point out how ridiculous it is for the government to try and confiscate people's hard earned bitcoin. Not saying that will stop them but it will expose them in many ways and you can move to a different jurisdiction with all your wealth if you are a Bitcoiner. The one thing that gold has over bitcoin is, as you pointed out, KYC. KYC sats are much easier to track than gold. However, a lot easier to "lose your bitcoin" than it is to lose gold.