I agree but if you need to bridge into traditional finance (eg. Buy a house) then you need to have a proper paper trail for your tax authority. A paper trail to the tax authority is a window into your finances is a threat. So you see how it isn't entirely stress-less. But I do agree with your overall sentiment.

I agree with your point as well. I wonder if btc backed loans require paper trail. I’ve thought about that and I’ve come to the conclusion that if I ever want to unlock the liquidity of my btc, I will just use it as collateral.