I don't know if fewer people will choose to hold bitcoin in such a scenario. I think that there's something to be said about the social and political complexit

I don't know if fewer people will choose to hold bitcoin in such a scenario. I think that there's something to be said about the social and political complexity that might lead to such a decision, and whether that is a factor for peoples' thinking. I am, however, confident, that irrespective of the number of holders, that the price will go up. I don't understand your last point at all. It seems to me to be the same as suggesting that in the presence of cannabis prohibition that the price will decrease because people will choose to use other medicines and psychoactives. The two are only distantly related; fewer users does not imply a lower price.