Yes on-chain btc fees are crazy low now, which I assume is due to low use.  If true, that is not a good argument for scaling.

And no, I am NOT saying darknet market evasion is the reason for privacy.  I'm saying if users have to actually calculate the capital gains/loss on every little purchase, they will avoid using Bitcoin for cash to not have to do that.  The only way to make them feel that they do not have to, is if it's private against advanced adversaries.

All the deep state has to do is to make an example of ONE REGULAR person for SMALL amounts, and the entire bitcoin lightning as cash concept will be killed.  They can promote that person in the media all day.
 

 That example isn't unique to bitcoin alone. It applies to all KYC'd "crypto" including monero. 

I mean, thats one of the reasons bitcoiners have this HODL culture. In most countries there IS a capital gains tax from spending bitcoin. So why would one spend it when they could spend their worse money first.

There's an argument that this kind of thing might be good as it shows why noKYC often comes at a premium but its worth it. 

 Yeah but if all you do is HODL KYC bitcoin, then how's that really improve people's freedoms?

It's not getting people off banks, which is the real issue.  It's not private.  It's just a new gold ETF.

Cryptocurrency is unique to stop fractional reserve banking.  Just helping with inflation can be done with anything.  People could hedge inflation with gold ETFs and it would be similiar