Yes, that is the big catch. If it catches on and goes mainstream, it's way undervalued. If the government steps in and outlaws or heavily regulates it, or something replaces it, it's way overvalued. It's one of the two. :)
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It would be strange for a government to outlaw a technology. I could see them outlawing a particular crypto, but the entire space would be a big move. Particularly with big corporations starting to invest.