If KYC is no more, it will be hard for you to get attacked in the future just because you hold Bitcoin because if you hold your Bitcoin in your non-custodial wallet, no one can trace your wallet to your home because tit submitted no details to get you tracked, and it will also be difficult for SEC to tax you or give you some regulations unless if the hardware wallet you are using get hacked and you lose your Bitcoin in the process because the rate at which wallets are getting hacked is something we need to be very cautions about. Maybe we will have to be choosing open-source wallets and be changing from time to time to avoid relying on one wallet for long because once a reputable wallet hacked, it affects many Bitcoin holders not just one person.
Yes if you are quite a private person who keeps quiet and hides his wealth and knows how to use Bitcoin or crypto privately, but otherwise this is not really true. Not having to do KYC removes one attack approach on the person, but there are many ways that they can be tracked. I will give two examples of transactions, besides people liking to talk or show their wealth which can quickly get them identified. You go to a restaurant that accepts Bitcoin several times, these people already know your identity by this time. You pay with your wallet, they look at the change address and find related addresses with the blockchain. They see that you have a lot of wealth, and they tell other people and those people also tell others and the information keeps going until it reaches the wrong ears. The same can happen with an online payment, let's say with a merchant where you order something to your house. This topic is not as easy as KYC or not, because you can make a mistake easily with payments and have a big problem. Only if you use XMR could you avoid this attack.
KYC verification for Bitcoin holders. We should be specific. Some industry actually needs KYC to run their business properly. So I will specify properly.
I don't think there is objective or logical proof that it is needed. Accepting something because that is how things were for a long time does not prove proof that it is necessary to conduct these types of businesses. Maybe we need to completely think in a new way how to approach the problems and solve the issues that we want when it comes to businesses like banks or other financial institutions without risking people.
