Crypto makes taxation voluntary. Can you imagine if governments had to compete for tax payers?
Governments have, for all of human history, extorted taxes via force. Threat of imprisonment, violence, seizure, etc. What happens when citizens can carry a lifetime of wealth in their heads, spend the wealth anonymously and without a trace, and pass that wealth to future generations with no record?
That is the true power of crypto. Governments that adapt quickly and move to attract crypto wealth by respecting privacy, providing excellent service and showing fiscal responsibility will flourish. Governments that continue to treat their citizens as milk cows, are wasteful, corrupt and violent... will wither and die.
Crypto is freedom.
It's a nice idea, but you still encounter the free-rider problem. The tragedy of of commons remains an enduring dilemma.