Oh Frank. This will most certainly happen as we capture more market cap. Banking and financial Institutions will have their licensed wallets.

First rule of war is to destroy roads and control the flow of supply. BTC in cold storage will be very valuable supply but can only be used in a circular economy in cyberspace. Changing it back to fiat or purchasing assets in the real world will require you to do so via banks through their licensed wallets.

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 If the government made bitcoin wallets illegal and you could only use the governments wallet, and with the transparent block chain, they will know every transaction you make.

Just like everyone still pays taxes instead of going to prison.  People will break and give up.  

If the government takes over bitcoin and forks it however they wish, it would be a CBDC.  

The government plays to win.  I wonder what the future holds. 

 Most Bitcoiners dismiss pragmatic theories but as an asset grows in fiat value terms, the more a structure of control in the real world is established around it.

Right now, 500B market cap is no threat to the system. This will change.

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