I agree that custodian Bitcoin (or anything really) is not much better than FIAT if they can issue more IOUs than assets they actually have.

I agree that for the time being due to custodians and KYC market places Bitcoin is easier to track due to its transparent block chain, enabling surveillance states.

Self custodial non-KYC Bitcoin is the best overall. At this stage, with few businesses accepting ₿ and most people owning it in KYC custodians, it has large disadvantages.

It's inevitable that people will break free of the custodians and KYC though once it really takes off and we can transact person to person more, but I acknowledge that until that time it's not much better for privacy than FIAT. Thanks for the friendly discourse! 🙂