This was an interesting viewpoint. It's definitely a different lens than I have, but I hear what you're saying.
as they continue to match wallets with owners
This line did resonate as I'm a bit concerned with this, especially with the KYC requirements. Unless I move to a tax-free zone, I don't mind paying taxes, but I don't think the gov't knows any less about what assets/fiat/bank accounts most people have in lieu of this. Ultimately, I don't mind if the gov't knows how much crypto I have as long as I report it properly and play within the lines.
For the time being, and given my position in life right now, I don't mind holding long with crypto. I have some silver, and would like gold, but I can't see those metals appreciating in value anywhere near the magnitudes crypto can for a while. When the point comes to sell, yes that'd be back to fiat, and into real assets, but perhaps Bitcoin will be a real asset in its own right in the future.