and he said no, because you also can't do this. Bitcoin has not solved any problem there.

A local agent on a flat fee will probably make things easier.

Nonsense. Your funds can be frozen with no recourse even if you're innocent. No-one will tell you what you supposedly did wrong. Everyone who hears about your predicament will make up reasons to believe that you'd done something wrong because they want to believe that the system doesn't make mistakes.

That's not something solved by cryptocurrency in its current form.

These exchanges freeze accounts in fear of what governments might do to them if they weren't cautious/suspicious enough. They have no economical interest in freezing account otherwise, that's one less customer trading and paying them fees.

Well, sometimes. Sometimes they get frozen because the exchange operator decides to take the money and run.

However because opaque anti-fraud stuff, that I am not informed about, I was stuck in the middle of a field trying to convince someone in a call centre that the car I could see with my own eyes (and I had done all the appropriate checks) does indeed exist. This whole process took almost an hour because their anti-fraud team has a two hour response time.

There are obstacles in the banking system that make doing legal transactions difficult.

Was it something the state enforced, or something being done by the agents of the transaction (ie the mortgage company)?

Now try buying some property in South America. Or Eastern Europe. Or Asia.

Be prepared for a similar experience OP documents.

you mean the purchase deed isn't registered anyplace?

or you mean that the mortgage company didn't do a credit/background check on the buyer before granting the mortgage? Which includes some level of providing a state-backed identity card?

Or do you mean it's easy to buy a house for cash without hassle in the US? Just a suitcase of $100 bills? I'm assuming you've tried this recently?? (and the house cost more than 150K?

Maybe the suitcase of anonymous cash bit is easier but only because you're doing that to dodge taxes... In which case feeling like a criminal might be a bit on point.

You can call them a dystopic theocracy, which is a bit true, but you can literally just fly over and buy a condo in a neighborhood with basically zero violent crime, with 2 bitcoins with essentially no questions asked.