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I think this is likely. Worth noting that non kyc addresses and commerce will still exist for sure, but people just won't send non kyc bitcoin to kyc addresses and that is that.

On the other hand, things might not play out this way, depending on the incentives and general capabilities of law enforcement, but the possibility is real

when you think this is likely, arent we currently building tools for our overlords to surveil and control us while we jump around and celebrate Bitcoin as a freedom technology?