Why couldn't you exchange crypto for goods directly? You don't need an exchange for that. The whole point of crypto is peer-to-peer commerce with no centralized third party interlopers.
If you can't go to a grocery store, or a farmer's market, or to your local tech store, or so on to spend it, what are they spending it on?
You can't pay employees in crypto if it's made illegal to do so, so stores wouldn't actually accept it.
So now you're trying to say that, you'd be able to trade it to someone else, who would then have to find someone else who both has what he wants and is willing to take a currency that can't be spent in any stores, and so on.
Congratulations; you are describing a non-viable currency with less intrinsic value than fiat in this situation.
You can't pay employees in crypto if it's made illegal to do so, so stores wouldn't actually accept it.
Sure you can. What makes you think just because a failing government says businesses can't accept something as currency that means they are all going to obey? Crypto can't be censored, they can only control the onramps. Once people get comfortable enough with crypto that they know how to send and receive to each other there will be no need to ever go back to fiat.
If such a scenario came to pass would you accept an enforced central bank digital currency just so you can go to the grocery store? Or would you find ways around it where the government doesn't have complete control over your finances?
Why couldn't you exchange crypto for goods directly? You don't need an exchange for that. The whole point of crypto is peer-to-peer commerce with no centralized third party interlopers.
Because how do you have value to that?
If you can't go to a grocery store, or a farmer's market, or to your local tech store, or so on to spend it, what are they spending it on?
You can't pay employees in crypto if it's made illegal to do so, so stores wouldn't actually accept it.
So now you're trying to say that, you'd be able to trade it to someone else, who would then have to find someone else who both has what he wants and is willing to take a currency that can't be spent in any stores, and so on.
Congratulations; you are describing a non-viable currency with less intrinsic value than fiat in this situation.
Sure you can. What makes you think just because a failing government says businesses can't accept something as currency that means they are all going to obey? Crypto can't be censored, they can only control the onramps. Once people get comfortable enough with crypto that they know how to send and receive to each other there will be no need to ever go back to fiat.
If such a scenario came to pass would you accept an enforced central bank digital currency just so you can go to the grocery store? Or would you find ways around it where the government doesn't have complete control over your finances?