Oh hey look the consequences of a monetary system that isn't backed by a legal system (that is backed up by people with guns).
The reason fiat money works is because at the end of the day if you run into trouble you have the legal system to make things right. And if the perpetrator of the crime doesn't listen to the legal system, there are people with guns/violence to back that up. That's why the whole system works -- because of the threat of violence.
Crypto doesn't have that. It has a lot of advantages (I use crypto myself) but it also has a big disadvantage, for now.
When the USA starts issuing it's own crypto they might solve this problem by requiring KYC to get the coins, but then of course you loose the anonymity aspect.
The reason fiat money works is because at the end of the day if you run into trouble you have the legal system to make things right. And if the perpetrator of the crime doesn't listen to the legal system, there are people with guns/violence to back that up. That's why the whole system works -- because of the threat of violence.
Crypto doesn't have that. It has a lot of advantages (I use crypto myself) but it also has a big disadvantage, for now.
When the USA starts issuing it's own crypto they might solve this problem by requiring KYC to get the coins, but then of course you loose the anonymity aspect.