I’m curious about the idea that governments can really blacklist bitcoin (as the best example) wallets/coins in the long run.
Assuming they track “bad” coins through the network, these will be split and spread, much like a virus … and we’ve seen how effective government is at containing a virus - something that people themselves don’t want to spread … but money, people do actively work to spread/trade it.
It seems to me, that even if they can track it all - and I assume they will be able to do so, it won’t take too much time before only the protected wallets are clean … which really would drive black markets in earnest - where the vast majority of trade would eventually take place.
Innovation occurs in free markets, not closed ones as closed markets don’t have to innovate - they have trapped users. So eventually all innovation would go to the black markets … and thus eventually all trade would flow there too.
I don’t want to discount the power of DBC’s here though as I reckon many black markets will come to exist on SN due to it’s inherent security. But I’m thinking that the fungibility solution offered by DBC’s isn’t perhaps that BIG of an issue longer term.
All just speculation of course and the more pluses we have for SN the better.