Decentralization at Risk: What Are We Missing?

The decentralization we're all working on is in danger. There's a significant pushback coming our way. Even with brilliant ideas from thinkers like Friedrich von Hayek to now, central banks are starting to roll out their own fake decentralized currencies. Maintaining anonymity and keeping third parties out is gonna be tough soon. Just been thinking about all this. I’d love to hear your thoughts on what's happening now. Feels like there's something missing in the financial scene, but I can't quite put my finger on it.

There is nothing missing OP from the idea of decentralization which Bitcoin offers. The problem is that there has been a direct attack from government to fight against decentralization that is why we are seeing different laws such as compulsory KYC on exchanges in the name of security measures from government.  Government knows the weight that decentralization has that, is why they are doing everything possible to make sure that the idea of decentralization is defeated but I don't see that happening.

I think large city dwellers also support governments.  Because power is in the hands of those who already hold it.

One thing you're missing in all this and it has been observed before - the crypto market can receive huge shocks if large governments ban or even hint at banning them. When it was aired in the past that Europe or America was looking at banning legal ownership, the coins took a dip and it dipped when China banned it too. Of course bitcoin is decentralized and legal frameworks have put in place in the first two large markets, but if governments decided to outlaw it - the price can drop like a rock and your value is gone. Having central bank currencies is actually a good thing, they could act as the day to day liquidity which also exposes more of the general public to this asset class - while BTC, ETH, etc. can act more like gold and silver commodities.

The price of Bitcoin sometimes falls due to government bans. It would not be wrong to consider Bitcoin as an investment like gold. However, the price of Bitcoin will fall due to government price movements, but Bitcoin will not fall to zero. If one country stops Bitcoin transactions, another country will use it. Just as there is a decline in the Bitcoin market, the price also increases skyrocketingly. Since Bitcoin is a decentralized currency, no one will ever be able to bring it to zero. Whatever the banks plan, it will only be a futile effort, because many have started in the past to see the end of Bitcoin, if the government of a country verifies Bitcoin well, they will legalize Bitcoin in all those countries. Because Bitcoin is decentralized, no one has a hand in it, the government should legalize Bitcoin even if it is thinking about preventing inflation.

If we are talking about CBDC and other similar stuff that are basically stablecoins but backed by governments, while I do dislike governments, all around the world, I do support this movement. Because right now stablecoins are managed by companies, and if there are anyone who I dislike more than government, that is centralized around a company and a CEO, and the reality is that do I trust tether more than I trust US government? No I do not and I trust government a lot more. That is why I am not really feeling threatened by it, I think it will be something that is a lot more further along the line and that should be something that needs to be done, they need to make sure security is very important though.