Being in a third-world country and part of the crypto community feels so liberating. You can feel the difference between you and a non-crypto person.
On what basis do they hit you? Anyone that ever has any link to crypto? That's everyone. Crypto has a level of security and plausible deniability, that makes such things unrealistic. That's why you don't hear about it happening often.
To many people under these regimes, there is much more security afforded to them by crypto than by their governments and currencies.
There are highly liquid international markets for our currency vs other fiats. The government has relaxed capital controls substantially over the last 20 years.
Right now the focus of government is taxing crypto. Capital controls are taking a back seat, because enough Dollars are coming into the country to pay for imports. External debt is minimal.
until it goes to literally zero, which IMHO seems more likely every month
You don't get 50% dilution of your savings within a year.
> How many goods and services can you pay for with cryptocurrency where you live?
In a liquid market, you can convert your weekly needs and pay using cash.
> What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins?
If they are going to do that (and some countries do that), they'll start with bank accounts and visible shit (goods moving in the street).
Although if you're measuring bitcoin against the USD, you could have done that in May :)
In western Europe most places tax at source, which means your wages are taxed before they are sent to your bank. This sort of direct taxation ensures more compliance. I think rather the issue is that many places will deal in cash, where it is easier to avoid tax.
The US does this too; it's known as "withholding". There are also "estimated taxes" paid quarterly if you have significant income outside of regular employment and thus not subject to withholding. You still have to settle up at the end of the tax year, but by that point the vast majority of the tax (and perhaps a bit more) has already been paid.