If the government goes full retard on AML/KYC implementation, then it opens the door for people to resist and go all in to the black market

When cryptocurrency to fiat conversion is essentially severed by banking interests and governing regulatory agencies, then cyrptocurrencies effectively become worthless baubles. Cryptocurrency is not like heroin or cocaine that has end-use value. It is merely an exchange medium that requires an end-point conversion to fiat. What sane mercantile institution will accept cryptocurrencies for their wares, when there exists no financial institution for fiat conversion?

For cryptocurrencies to have any value, it requires banking cartel support and government assent for fiat convertibility. Can "peer to peer" transactions support millions or billions of USD worth of transaction orders? Peer to peer is a fad, not some revolutionary exchange medium that will replace the current financial institutions.