It would be exchanged for cash illegally and outside the US. If they banish cash, it would compete directly with fiat currency - potentially replacing it in areas without total control by the government.
I think this is a poorly worded question. First, if crypto couldn't be traded directly into cash, but could still be traded for something else that could be traded for cash (like fiat-pegged stable coins), it would still have value. Whether or not it's a viable alternate currency sounds very subjective. Some people would claim it could never have value.
From a technical standpoint, crypto will always have value as long as there is a network to process trades and two people willing to trade with each other. It's designed that way, so even if it was illegal, people would still trade each other for cash. The only way to stop that would be to sabatoge the networks that process those transactions.
There still be some value, but much less.
There are two types of crypto uses, legitimate and speculators. Legitimate users do use it for what's intended, commercial transactions. Speculators just want to buy low sell high. Most users are speculators, and the'd abandon crypto if that were to happen.
Among legitimate users the main use for crypto is international transfers, that's what I personally use it for. Buy in one country, immediately sell in another. Far faster and cheaper than banks. But this also relies on being able to convert to fiat, and the existence of a large market, which needs speculators. That would only leave a small sector of legitimate users that transact in crypto.
The value of crypto is the sum of these two. Intrinsic value (from legitimate users) plus speculative.
Crypto is not intended to be invested in by non-technical people. It is not a method to store wealth & labor.
Crypto is a decentralized technology to allow decentralized financial transactions and governance, without outside manipulation and control, that has an infallible ledger record of transactions that cannot be subverted.
Unfortunately it has only really succeeded in enabling Ransomware and the FTX fraud.
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lots of people around the world use it for legit transactions... you can even walk into a McDonald's in El Salvador and pay for your food with bitcoin.
OK, I forgot to mention the illegal International drug and gun trade. It was such a pain for the cartels having to ship all that US currency back to El Salvador for the cocaine, Bitcoin has replaced the US dollar as their basic currency.
Not true. Those that wish to detract from what it has accomplish typically parrot this falsehood, however.
You cannot deny that crypto currency is the key reason that ransomware proliferates. The untraceable transfer of money is the key.
Convertion to fiat is only necessary because few goods or services can be purchased directly with crypto. However that could change tomorrow. Crypto is no more or less valuable than fiat. Its all based on who is willing to trade their goods and services for it and at what rate. If anything crypto has the POTENTIAL to be a superior currency to fiat since its quantity can be capped.
Its convertibility to fiat is what made it perfect for extortion and money laundering.
Meaningless question. Things of value are convertible into other things of value. Houses are convertible to iphones and iphones are convertible to milk.
My room mate Bob has successfully used Bitcoin to buy silver and have a box full delivered to the front door; no dollars involved, and the coins were mined not bought on the market.
There is decentralized crypto and centralized jew bank money they use to require you to have a diversity officer at your company to get loans. Most don't even know ONLY BANKS CREATE US DOLLARS.
Use crypto. Don't invest. Use it to buy, sell and trade.
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