Are pencils useful to criminals? They can be used to write down schemes for robbing banks, kidnapping letters, etc.
What about guns? Weapons give criminals an edge in committing crimes.
Of course, pencils and guns can be used against criminals as well. Most people would agree that it’s a good idea that weapons exist (even if you think that only the policy and military should have them) — otherwise, the strongest bullies could force their will on everyone else, and society would collapse.
So what you should really ask is – will Bitcoin lead to more crime or less?
Arguments for more crime:
The quasi-anonymous nature of Bitcoin makes it very convenient for extortion payments, bribes, etc.
Stealing Bitcoin can be easier than stealing cash given that it is portable, easy to transfer, the transactions are irreversible, etc.
If Bitcoin is properly secured (on hardware wallets, in a vault, in your head), it can be harder to steal. Again, most theft is committed by governments, especially in the developing world, and cash is a lot easier to find that properly protected cryptocurrency.
What emerges from looking at these and other markets is that network effects lead to a dominant player, a secondary minor player, and about three competitors with marginal market share.
However, if you expand the definition of the market, the picture can change dramatically. For example, if you include mobile device in the “operating systems” market, Android is #1 at 41. Likewise, Facebook’s dominance varies from 60% to 99.8% based on how strictly you define “social network.”
Let’s apply these insights to cryptocurrencies:
A single dominant cryptocurrency is likely to emerge with 90%+ market share. Given the strong network effect of money and the probable lack of nation-state restrictions on adoption (unlike the USD), the dominance may be over 99%.
However, if we expand the market definition to “cryptographic assets” or “digital assets” then we need to include tokens and securities such as Ethereum and ERC20 tokens. This expanded definition may see the leader’s share drop to 60–70%.
The free movement of labor across borders is the single most beneficial variable in the US economy:
“According to the paper Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? (2011) by Michael Clemens at the Center for Global Development, open borders could lead to a one-time boost in world GDP by about 50-150%.
” typical workers in developing countries would see annual wages more than double, from an average of $8,903 today to $19,272 with open borders. That is, the typical worker in the third world would end up making about double the individual poverty line in the United States today. “