Will Bitcoin survive the loss of privacy that comes with the passing of every new law like KYC (Know Your Customer) and AML (Anti Money Laundering) Laws ?
Without full decentralization of exchanges and sufficient encryption - the simple answer is : No
While Satoshi may have had a hard currency with limited supply being his primary goal in mind when he initially wrote the white paper - the market had other ideas. Bitcoin was used as a means of tranfering value ANONYMOUSLY for the greater part of its ten years of existence.
Regardless of what it puchased - its real selling point lay in the fact the NO ONE had the ability to know HOW MUCH BITCOIN YOU HAD.
Not even Government.
While this may have have sinister effects on exchanges like MtGox - as far as personal HODL-ing was concerned - you could still carry around a million dollars or, more - without fear of confestication - across borders if you had the the foresight and restraint to keep both your private keys hidden and your mouth shut.
While this is still possible in theory - both the aquisition and selling of cryptos on centralized platforms have but all been eliminated with the verification of identity requirement.
This had inevitably had a chilling effect on the market. What use is it having bitcoin when people KNOW you have it?
You may as well have a J.P. Morgan coin.
Government has only one way of aquiring value - and that is to STEAL it by means of writing (Law) or, by the use of force (Police Force) - and they will do so - if they perceive it to be worth their effort.
Remove anonymity from Bitcoin - and what do you get?
Nothing really.
And that's what the Government is hoping for.