If the government decides paid sex work is illegal, it'd also be hard to make transactions for it via Bitcoin.

If you think taking your wallet (the key) and running away with it is an option, then how is it better than using cash?

It's not that its illegal. It's that its "discouraged" via arbitrary regulation usually under the guise of money laundering or high charge backs. For instance, cam girls are legal in the US, but they have a difficulty getting a payment provider Same is true for states with recreational marijuana.

Cryptocurrency also solves the problem of charge-backs. Venmo and PayPal gives a sense of finality, but it actually takes days to transfer the funds. That's why there are so many paypal scams on craigslist

> the problem of charge-backs

Charge-backs aren't there to purely annoy/scam sellers, you know.

> difficulty getting a payment provider

Because there are too many money laundering attempts via transactions in that industry. If you want to deal with the stuff Paypal/Venmo/etc doesn't want to deal with, go ahead.