A law that says you cant transfer bitcoin to an address?
That's literally its only function. ;)
I don't think you have enough respect for how undeniably valuable all the dapps of the future will be. The decentralized exchanges will eventually just be better than the centralized ones in every way. These networks arent going to be toothless forever.
Also the amount of cooperation between centralized exchanges required to shuffle around Bitcoin that doesnt exist is insane. Not an easy secret to keep whatsoever.
Please see my reply to JoeyArnoldVN. It has nothing to do with respect for the value of dapps and everything to do with human behavior and their laziness. I've been accepting crypto at my software business for almost 3 years now and still people ask to pay using a credit card even though I give a 50% discount for using crypto.
Right, because the network is so small and non existent no one wants to use crypto. So what happens when the decentralized version of things becomes easier to use than the centralized counterpart? You are not accounting for this.
Fractional reserve Bitcoin makes sense in the context of one exchange not being truthful about how much Bitcoin they have (which I doubt Coinbase is doing at the moment). It does not make sense in the context of a connected web of exchanges. No exchange is going to allow fake Bitcoin to be transferred to them.
To assume that we could somehow end up with the same system seems a bit alarmist at best. It's no secret you can loan the same money 10 times in a row with fractional reserve banking. It would be a huge secret in the context of Bitcoin. One that would cause big investors to exit and exchange and immediately make it insolvent.
This is where your idea comes in to make this action illegal. Making it illegal to transfer Bitcoin is just going to make users even more nervous and find even more innovative ways to exit the exchange in question... which would be easy because US law is only going to affect US exchanges.
This is not a problem we need to be worrying about for another 20-30 years.
By that time the landscape will be completely different.
Unrecognizable from where we are today.
I am. I made the switch to being paid in crypto for my software nearly 3 years ago long before the crowd started doing this. We have 1% adoption at best currently. Once the majority of people are accepting payment in crypto they will not feel the need to exit to fiat. We need 1 or 2 bull cycles like 2017 to achieve this.
So let's hope you're right and that people won't stay lazy or complacent about how they are getting paid and can take full responsibility by being their own bank. A tipping point destabilizing the dollar and other national fiat might achieve this.