steve on Nostr: This is true if you only transact anonymously and P2P, which means not using it as ...

This is true if you only transact anonymously and P2P, which means not using it as digital cash. If you gave that Bitcoin to your grandma, or to a business, you might unknowingly be giving them Bitcoin that was stolen in ransom attacks or used in DNM’s, and which would get their account frozen if/when they try and exchange it for fiat.

Cash must be memoryless to fulfill its function as cash. It must be highly fungible and liquid in order to permeate all areas of society and circulate between strip clubs and churches without ever developing a history or an identifying characteristic.

Purchasing anonymously and P2P protects your privacy, but it changes nothing about the fungibility of the Bitcoin itself. If you use anonymous P2P Bitcoin as cash, you could be putting others at risk who might naively deposit a ransomed BTC into Coinbase.