An inability to scale tied to the problem of concentrating resources. The minute you start having non-trivial manifestations of your power in meat-space you be

An inability to scale tied to the problem of concentrating resources. The minute you start having non-trivial manifestations of your power in meat-space you become subject to a whole range of logistical concerns. Say you've got 1,000 people in your initial group but they're spread out all over the world, what can you actually do? You want to provide services and representation, but - even if those people each paid 20% of their income to you - you exist largely in the web and your ability to manifest goods and services that are going to be useful to your members is almost non-existent. Governments gain an advantage when they can provide goods or services in common. Thus making it cheaper than each person providing that resource for themselves.