Even the IRS, Secret Service, FBI, and every other agency that manages money/regulation has already admitted that privacy is the foundation of fungibility. If you know were funds came from then they can be blacklisted, or even worse claimed by someone else who the money was stolen from.
The supreme court ruled that this cannot be allowed. If someone steals your money and spends that money, it's gone. You can't find the person who took the money as payment and demand your share back. It's already been washed, only way to get it back is with a lawsuit involving the original thief.
But that doesn't stop the regulators from digging their claws into the exchanges and the data farmers. Using KYC links to bank accounts, many wallets are accurately attributed to the identity that owns the keys. It only takes one link to a source that identifies you for everyone to know everything you've ever done on that address.
It is the data control grid matrix we live in that isn't private.
Without the control grid, Bitcoin is impossible to track.
Imagine being able to live in a house without KYC. Imagine being able to buy and drive a car without KYC. Imagine it being legal to tint all your windows. Imagine it being legal to drive without a license plate. Imagine it being illegal to use facial recognition technology and other flavors of the overreaching surveillance network.
And you might be thinking... well it's not possible for those things to happen. Oh, it's going to happen. Some libertarian city is going to pop up and it's going to be flippin insane. I guarantee it. Not sure if I'd want to visit as I would not be surprised to see military intervention on opening iterations of this evolution.
But without KYC... there will be scammers everywhere!
Yeah, that's very true. There will be bad-actors everywhere, and that will still be x100 times better than what we have now. The system we have now has taken us this far, and it will take us no farther. The legacy structure is breaking down at the seams, and whatever this is... is taking over in a big way. There's simply too much value to not. The writing is on the wall.
There's a reason why police aren't allowed to present evidence in court that was obtained illegally. In certain situations it would make sense to allow this evidence to stand. Clearly, the person implicated is guilty. However, we have learned, time and time again, that allowing the law the break the law in order to get the job done is never worth it in the long run. Once that seal is broken corruption sets in and all kinds of bad behavior stuff floods out of Pandora's box.
Requiring KYC should in itself be illegal. It simply violates too much privacy and we've gotten to the point of such extreme diminishing returns on that front that it's just simply no longer worth it. This is the way things are heading. KYC in it's current form is primed to be completely wiped off the Earth.
Look at my account: 
I've been here 3 years trying to build a reputation. Do you think I can just start over and boot up another random account and expect to land right where I am now? Not possible. If I were to burn my identity here it would be gone forever and I'd have to start out and ground zero and hope no one figured out my new identity. So while KYC is primed to be eliminated, wallets, addresses, and accounts still have associated reputations within the system. This is one of the things that makes Hive superior to most projects, our accounts are also user names, and those user names have a reputation.
Imagine being on the road and being able to upvote/downvote other drivers. Imagine your driving rank actually meant something and those who did well had more privileges within the system. There are going to be so many weird systems put into place it makes my head spin. This is a bad example, but the whirlwind of things to come is lingering in the background.
Bitcoin may be thought of as one of the easiest currencies to track, but if that's true why did it take so many resources to take down things like Silk Road and the like? All you have to do to avoid KYC is to avoid KYC. Imagine never using your name or social security number ever again. How would they ever track you, short of facial recognition? How would the facial recognition know who you are if your birth was never registered inside a KYC system? This is how crazy things are going to get. These timelines are expansive and explosive.
While there are many fantastic privacy protocols out there, they may become largely irrelevant in the extremely long term given a system that embraces privacy intrinsically. However, ironically, if we are to transition to such a system, the only thing that can get us there is privacy tech in the first place. It's somewhat of a self-defeating technology on the long term scale.
Regardless, privacy is very important, and anyone who accuses us of wrongdoing for simply wanting it as a basic human right should be called out for what they truly are: authoritarian fascists.
