PC you use to transact is physical too. Your Internet can also be traced. In China, accessing wiki gets you prison time even though the users use VPN. Graphics

PC you use to transact is physical too. Your Internet can also be traced. In China, accessing wiki gets you prison time even though the users use VPN. Graphics cards for mining can be taxed very high. Kiddy porn is a better example here instead of drugs. You could be walking around with trillions usd in the form of diamonds. And yet if you're in a desert you are likely not able to use it and die of thirst. In everyday live you need liquidity. Governments ensure liquidity legally. Crypto can't. At best it is like rare baseball cards collections that you need to specifically find buyers that willing to pay for it through specialized locations (which governments can control). Pro cypto arguments are out of touch with realities. They basically banging on government will accept it. It is basically like hoping Myanmar will back off after seeing protestor. In general direct firing to kill should be expected and proven to work. Expecting government to give the ability to print money is very naive.