This is tautologically true because "the system" doesn't accept trustless interactions. Most physical goods merchants or stuff like house purchases are basical

This is tautologically true because "the system" doesn't accept trustless interactions. Most physical goods merchants or stuff like house purchases are basically impossible without all of the KYC real-name must-have-an-address wheres-your-passport-m8 u-got-a-liocence-for-that-there-transaction stuff. There was an article on here just the other day about Coinbase asking for the physical house address of cryptocurrency recipients. If you're doing that then the whole system is pointless, all of the benefits disappear, if you're requiring all of the legacy stuff anyway just give them cash or send a bank transfer. So they're basically two different ecosystems by definition.