My point was not primarily money from illegal activities. While you are probably right about most of the liquidity in BTC coming from illegal activities (with the type of illegality often being secondary, by means of being almost universally agreed on).
I was getting at the valuation and the value extraction that is derived solely from the sigmoid-like climb of value in cryptocurrency, which is driven by speculation on BTC as an asset, not just by increasing adoption for regular economic transactions backed by external value.
Sure, the more traction and trust this system gains, the last part of my sentence (BTC backing "real value") might increasingly become true, making my argument moot. But the almost feudalistic problems of "initial" allocation are not unimportant, in my view.
I was getting at the valuation and the value extraction that is derived solely from the sigmoid-like climb of value in cryptocurrency, which is driven by speculation on BTC as an asset, not just by increasing adoption for regular economic transactions backed by external value.
Sure, the more traction and trust this system gains, the last part of my sentence (BTC backing "real value") might increasingly become true, making my argument moot. But the almost feudalistic problems of "initial" allocation are not unimportant, in my view.