As I recall, Bitcoin was designed for resilience to government pressure. But that's never been tested, in any substantive way.
I'm not aware of any reason why the Bitcoin network couldn't switch to VPN-level overlay networks. Using Tor would be somewhat problematic, given the limited bandwidth. But I'm pretty sure that it'd be doable. Other options include Orchid and Loki.
Mining could be an interesting issue. Government pressure could render large-scale mining operations unworkable. But as I understand it, the Bitcoin network could function just as well with far^N less mining capacity. Difficulty would just decrease with less mining competition. And that would mitigate the key negative impact of electricity usage.
Bitcoin isn't resilient because trading goods for bitcoin doesn't happen, therefore BTC is reliant on people being able to purchase it using their existing government-controlled money using regulated bank accounts.
There's probably a workaround for that. Or there arguably would be, if enough people cared enough.
Not too many years ago, there were trusted services that sold Bitcoin (and Liberty Reserve and Pecunix) for cash sent anonymously through the mail. I haven't needed that for years, but I'm pretty sure that such services still exist. And given the escrow sector that's developed to serve dark marketplaces, trust is likely far more verifiable.
Cryptocurrency and meatspace money are now entirely separate for me. I earn all the cryptocurrency that I need anonymously online. And I don't risk manifesting it as meatspace cash. While that's not currently workable for most people, I don't see why it couldn't become so.
>Cryptocurrency and meatspace money are now entirely separate for me. I earn all the cryptocurrency that I need anonymously online. And I don't risk manifesting it as meatspace cash. While that's not currently workable for most people, I don't see why it couldn't become so.
Even if buying goods with crypto is out of the question for you (say, because you don’t want it linked to any physical address), you can still buy a decent range of services. A whole suite of digital services (VPS, VPN, bulk data backup, domain registration, etc) is buyable with cryptocurrencies. A number of places will also accept donations in Bitcoin. Depending on your social ties, you might commission digital art with Bitcoin.
Now, most people I know who hold Bitcoin are motivated primarily by other reasons. But still, I can cut down my cash spending/donations by a few $1000/yr just by doing those things above — which have fairly loose ties to my physical person — with Bitcoin.
i.e., you cannot fulfil your meatspace needs using cryptocurrency as of yet. It doesn't matter that you are able to isolate your identity online from your meatspace identity.
And this is what gov't can easily enforce - through money laundering laws. If ever cryptocurrency becomes prevalent enough to offer meatspace usage directly, you can bet your bottom dollar that gov't will regulate, and prevent anonymous spending (at least, for any large-ish amounts).
That's true. But still, cryptocurrencies could arguably remain useful, even if they never widely displaced meatspace money. I mean, consider how thoroughly online dark marketplaces have displaced meatspace drug dealers. And perhaps there are other suitable niches.
For example, cryptocurrencies could displace cash for gig economy tips. Maybe they already have, for all I know. Also for online porn and gambling.
And in basic terms, how do you earn your crypto, selling what? I can think of only a limited number of things one can easily, readily sell for BTC or etc.. So, a bit curious and hope you don't mind answering since you're anonymized.
Mostly I write stuff for people. I've written a lot for IVPN's website, and also for Restore Privacy. I bill at typical meatspace rates.
I've also done some privacy-related development. For example, a client wanted a private IKEv2 server with a nested VPN chain backend. To provide iOS devices with anonymity that was stronger than VPN services provide, but also easy to use.
I'm not aware of any reason why the Bitcoin network couldn't switch to VPN-level overlay networks. Using Tor would be somewhat problematic, given the limited bandwidth. But I'm pretty sure that it'd be doable. Other options include Orchid and Loki.
Mining could be an interesting issue. Government pressure could render large-scale mining operations unworkable. But as I understand it, the Bitcoin network could function just as well with far^N less mining capacity. Difficulty would just decrease with less mining competition. And that would mitigate the key negative impact of electricity usage.