What I observe is that only investors on this forum still care about privacy. But through other social networks, the rest of the market cares more about profits than anything else , and many people are not even aware of the decentralization or privacy that bitcoin can bring.
Sorry for the delay, forgot about this thread and didn't see your answer.
The point I'm trying to make is the following: Decentralization and privacy, i.e. censorship resistance, comes with a lot of real-life advantages many investors seek actively. The big selling point here is that
nobody can take the Bitcoins away from you (at least not legally). For example, many people buy Bitcoin because they distrust their governments or their country's economy, or fiat money. They hope that in the case of a crisis when all other assets implode, even if gold etc. gets confiscated, their Bitcoins will still be left for them, and that nobody can take them away.
That selling point only works if the Bitcoins can't be intervened by any state, and that nobody can be censored, at least inside of the Bitcoin network.
Thus I expect that a less censorship-resistant Bitcoin can also address only a smaller market. If it bubbles up to a million USD for example, it could crash hard quite soon if the investor group I mentioned above sells, and people discover that it has no advantages anymore versus other assets.
You mentioned the success of ETFs in another post as a counter-argument. But the ETFs are proving that point at least a little bit, too. Because they are not only an IOU, but actually legally transfer the Bitcoin ownership to the ETF investor. This wouldn't help you if you're a criminal and it's discovered that you deposited "dirty" funds to buy ETFs -- then you could get censored by the authorities and the ETF firm would have to abide. But in all "legal" contexts the Bitcoins are yours and nobody can take them away from you. That's why Bitcoin financial products before the ETFs were much less attractive to investors. Okay, in an extreme crisis where gold gets confiscated ETFs may see the same fate, but it's still better than a stock ETF which crashes to almost zero in such a collapse. And there are many intermediate scenarios where Bitcoin ETFs are still a quite good option.