You’re assuming US regulatory power is permanent and enforceable globally. It’s neither. Bitcoin is 16 years old. Judging its ceiling by current adoption is like dismissing the internet in 1995. Every monetary system starts niche. Your MSB threat assumes perfect enforcement. They can prosecute visible operators, but they cannot police millions of peer to peer transactions at scale. Enforcement costs matter, and they don’t scale. Containment works until the thing being contained becomes more useful than the system containing it. When fiat breaks down through inflation or capital controls, your regulatory friction collapses. Zimbabwe, Venezuela, Argentina, Lebanon, and Turkey already prove this. Bitcoin includes jurisdictional arbitrage. They can make it annoying in the US. They cannot make it annoying everywhere simultaneously forever. Friction creates pressure until something breaks, and history shows it’s usually the container, not the pressure.

The problem, is that you’re celebrating the government's need to use a sledgehammer, while ignoring they are building a better cage. ​You bring up Venezuela. When a fiat currency completely collapses, of course the regulatory friction breaks down. That's the exception that proves the rule. The US Government's goal is to prevent the dollar from ever reaching that point, and they are using containment to do it. ​The ultimate game theory move isn't to kill Bitcoin... You praise "jurisdictional arbitrage." The US government, with its control over global banking (SWIFT, USD clearing), doesn't need to regulate everywhere simultaneously. They only need to declare any non-KYC peer-to-peer operator who touches the dollar system an OFAC risk or MSB violator. That threat turns every major global financial institution into a containment agent for the US. Your circular economy of goods and services is entirely reliant on the stability of the container—the country itself. People switch to Bitcoin in Turkey because the state has already failed to provide a stable environment. In the US, the state is actively working to ensure the utility of fiat for everyday life remains overwhelmingly greater than the 'friction' of the Bitcoin economy. You can't pay your mortgage, your corporate taxes, or buy industrial goods with Bitcoin without hitting a massive regulatory wall. They are not going to make it "annoying everywhere." They are going to make it expensive to use as money and easy to hold as a monitored asset (via ETFs, regulated custodians, etc). You end up with a high-friction digital gold that funds a few niche black markets, while the state maintains its monetary monopoly. ​The US government is not like Venezuela or those other places, and it will contain its threat before the pressure of fiat failure forces a collapse. You are betting the cage will rust before the animal dies of starvation inside. I'm telling you they just added a new lock.