I talked about this before, and most people instantly wrote this off.

The typical response was 'If X bans the cryptocurrency, we will just trade in another country. That's the whole point!'.

Can somebody explain what will happen if U.S starts to feel the pressure from Bitcoin and kills it at the point of exchange? Sure, you will still have your Bitcoins, but they will drop in value and become useless.

Furthermore, what will happen to the market if 1%'s attempt to convert a couple of billions to USD at the same time? Who will honor that transaction? The banks will not touch it.

This will end up just like the banking crisis sans a bailout. People can't get the 'money' out because the exchange rate is not going to be honored, and the value of their money will drop over night.