But this will keep getting worse and worse until cryptocurrencies are outlawed. And this will not stop their use completely, but their value hinges on their trade value, which in large part depends on their legality. So the value will collapse to nothing. So now blockchains have no incentive to exist either. Poof.
and there it is.
My point was to explain why a trade tool's value is determined by its ability to trade with it, and demonstrate why legality of the currency itself matters.
If you don't understand this, you don't understand the concept of currency in the first place. Something being rare is not sufficient for it to have trade value.
You think the demand will evaporate if the cryptocurrency is illegal or hard to obtain. I think this is not true. Compliant hashes will still be easy to generate, acquire, and transfer and some people that they are transferred to will append the hash to a globally stored ledger. These concepts are not bannable.
The concept will never go away. The concept of computing a hash client side under an agreed upon set of conformity for eventually addition to a globally stored list of hashes. Although you haven't argued for making it go away, people that talk like you typically are arguing for the idea that the state can successfully make it go away. This concept works whether institutional exchanges say each hash is part of a unit worth $60,000 a pop or those institutions don't exist and the market says the units are worth $2 a pop.