> The crypto world is running out of safe havens. China cracked down, and cut the power to large Bitcoin farms. In the US, the SEC and CFTC have been tightening up on crypto-related things that look like securities and things that look like exchanges. Israel kicked out the binary option crowd, which overlapped with the crypto crowd; they seem to have moved to Bulgaria. Now the EU.
Which further proves the idea that cyberspace is independent of actual space is a lie, which renders any idea predicated on that as suspect.
There may be a brief periods where cyberspace is "more free," but it doesn't take long for the real-space authorities to notice and assert control (often in a way that's more complete than could ever be achieved in real-space).
Especially since crypto relies on two state monopolies: internet licensed providers and electricity providers.
I can cut a tree and trade it around in piece more easily than I can use the internet state-monitored access to ask someone to use the state-monitored energy grid to print me a bitcoin.
Crypto doesn't have to rely on large/detectable draws of electricity, as it can use Proof of Stake instead of Proof of Work.
As for internet access, with encryption, it's very hard if not impossible to discriminate on how people use the internet, so the state will have to either choose to ban people from using encryption, or live with crypto.
> As for internet access, with encryption, it's very hard if not impossible to discriminate on how people use the internet, so the state will have to either choose to ban people from using encryption, or live with crypto.
No. As long as "crypto" traffic is identifiable in any way, the state can ban it, encrypted or not. It's unnecessary for them to go through the trouble to decrypt it.
For instance:
1. VPN traffic can be fingerprinted, which is one of the methods the GFW uses to block them. I see no reason something similar can't be done for "crypto."
2. People need to get the software to participate in a "crypto" network. A state can target and taken down legitimate channels for getting that software, and backdoored versions can be distributed through replacement channels.
3. A state can setup nodes in a cypto network and then go after anyone in their jurisdiction who connects to them. Whatever "clever" trick you think you can do to avoid connecting to them (sort of only peering with people you personally know) can be easily defeated (e.g. "well I won't connect to any node in my home country" can be easily defeated by a state that rents VPS's in foreign countries).
>>As long as "crypto" traffic is identifiable in any way, the state can ban it, encrypted or not.
No, with encryption, it's possible to make crypto traffic completely indistinguishable from all other encrypted traffic.
>>1. VPN traffic can be fingerprinted, which is one of the methods the GFW uses to block them.
The state would indeed need to block both VPNs and TOR to make a dent in crypto traffic. The former would have huge negative economic repercussions. The latter, while not directly impactful on any significant economic sectors, would face major challenges from civil liberties advocates.
>>A state can setup nodes in a cypto network and then go after anyone in their jurisdiction who connects to them.
Crypto nodes that transmit their data through VPNs or TOR cannot be detected like this. In any case, I think it's highly unlikely that the people in any country with a strong democratic tradition would put up with their government doing what you describe. The government is not the master of society. It is the representative of the collective will, and the collective will be very unlikely to support such nakedly authoritarian measures.
Which further proves the idea that cyberspace is independent of actual space is a lie, which renders any idea predicated on that as suspect.
There may be a brief periods where cyberspace is "more free," but it doesn't take long for the real-space authorities to notice and assert control (often in a way that's more complete than could ever be achieved in real-space).