Bitcoin is moving toward widespread usage. However, as this technology successfully develops and spreads, many people still do not comprehend the disruptive changes that will take place in the relationships between states and individuals.
Let's consider what the future might hold in ten years.
Geographical wars and epidermics have made the current economic downturn that Western democracies are going through worse. To mitigate the damaging effects on the real economy, central banks are printing money in record quantities and flooding the market with it. Politicians, whose worries vanish after the election, entirely overlook or purposefully ignore the long-term harmful impact that results.
There are many, many more unsettling status quo problems than only growing inflation, rising national debt, and rising tax rates that restrict the creation of wealth. Due to excessive regulation, rising time preferences of firms and consumers, and the resulting resource loss in maintaining zombie businesses, the number of new businesses is dropping.
However, there is a fix, and it's called Bitcoin. People can leave the dysfunctional system thanks to its decentralized, censorship-resistant, non-confiscatable store of value and a predetermined limit on the money supply. It's more like a traceable escape than a concealed or unnoticeable one. Bitcoin can make people visibly recognizable by connecting disclosed personal data to transactions because it provides a public, fully verifiable ledger of all transactions. Obviously, this will alter. People will start using privacy-enhancing techniques and technology if absurd governmental restrictions are made to be violated.
To facilitate the movement of value into the expanding networked world without the requirement for identification in terms of transaction traceability and individual identity assignability, the software now used to store and send bitcoins will eventually include this technology into fixed components.
Countries will therefore only be able to access their national assets with great difficulty. It will be increasingly challenging to bring people to justice when privacy-preserving technologies are used to provide legal optimization. Additionally, there is no justifiable cost-benefit analysis from a national standpoint to continue enforcing the theft of an individual's riches. State-issued money will have to contend with Bitcoin's fierce competition.