This should also solve the scalability issues quite a bit by reducing the need to record as many transactions in the first place once the exchanges hold most of the coins.
Finally this should reduce the long-term potential in mining as the block reward keeps reducing exponentially with lower expectations of transaction fees.
Sometimes regulatory solutions do fix hard technical problems.
As monetary system Bitcoin, even more crypto in general, is still the one and only method to move money internationally in realtime with very low fees.
Never heard or used Lightning Network? Try it out on Cash App or run a node on an old laptop if you want to learn more.
> once the exchanges hold most of the coins
Exchanges hold a single digit percentage of coins, price will have to go to six or seven (or four) figures before they will hold most of the coins.
> Sometimes regulatory solutions do fix hard technical problems.
Sometimes regulatory bodies bend the knee and are last to the party, 15 years in this case. At least they are ahead of 98% of HN'ers!
But they don't have to worry, the 401k their company manages for them will make sure there is an allocation to a Bitcoin ETF