Given our past interactions and your posting history, it's clear you have a strong dislike for crypto.
However, your opinion (or mine) will be irrelevant.
> They'll take your knee caps, your finger nails, your life, or the entire nation's internet service down
They totally can! The only problem is they eventually run out of people or things the country can sell. And in the meantime, even before reaching that ultimate point, they destroy the economy by destroying hope: forced labor is less productive that voluntary labor.
That's because it's hard to rule people who don't care anymore. Even the threat of death may not cut it: just look at the risks people took to flee the soviet block!
A good tyrant applies just a sprinkle of violence.
> Technically correct is not the best kind of correct in this situation.
Indeed. And you are correct the government monopoly of violence keeps people in-line.
But it's not without end: a tyrannical government survive only so long as the population is willing to tolerate it. As the person you replied to tried to explain, civil disobedience happens.
If you need current examples, look no further than people not wearing masks, or the riots that happened on the 2nd lockdown of Europe: the more force you apply, the more resistance you get.
I don't believe governments will find the "ideal" amount of violence to keep people in-line - not for something like money. The blue dollar in Argentina, the existence of a cash economy etc. - there are too many signs that show this can't be done. Same as for drug or alcohol: the prohibition failed. The war on drugs is currently failing.
Yet it's clear that crypto will not operate in a wild west forever: just like the internet, some rules will be added, to tax it.
But it won't go away, as governments prefer taxing to killing!
Sorry to break your dream of crypto becoming illegal and drying, but that ship has sailed.