I think you underestimate how difficult it would be to kill bitcoin at this point. Nobody can take your properly secured self custodied bitcoin and there are too many people who plan to use it as money at this point. Sure there’s an unfortunate number of coins locked up in exchanges but there’s enough circulating in the wild to work out just fine.

Suppose they try to take over mining and effectively censor transactions. The network can implement workarounds like swapping out SHA256 to brick the ASICs and reset hash rate until it can figure out a long term solution. It could even, and I hate writing this, make a PoS layer 2 as a temporary solution until mining can decentralize again so that the people who actually want bitcoin to thrive can transact again.

Then suppose they make possession punishable by extreme measures. There are so many ways to embed Bitcoin transactions securely and covertly that it’s impossible to enforce. And on top of that, suppose your country does ban it. They have no control over the rest of the world who just might value a neutral reserve currency and continue to stack sats.

Bitcoin was designed from the beginning to resist attack and while it may not be perfect there is no second best.

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