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Unfortunately, that's not how the "politically & economically powerful demographic in the world" works.

What you will see is lots of new laws to crack down on hackers, encryption and any type of computing not specifically 'approved' by some sort of security overlord department.

Look at what the UK is proposing (way before AM became news) and you'll have a rough starting point.

The laws will be the exact opposite of improved privacy.

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Yes, but then someone creates a network for cheater spouses that gets in the news cycle because it's "impossible to hack due to futuristic maths" (ie. peer-to-peer). And now suddenly something decentralized and provably private seems very interesting and practical to those who were previously interested in legislative solutions. But I'm an optimist :)

And, the laws that we really need, namely harsh criminal penalties for companies negligently handling people's private data, will be absent.

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