>For example, when you are dealing with multiple small transactions where a potential for fraud on the buyer side is significant.
We already have systems that handle this issue well and have for decades. Why involve the blockchain?
>Also, if you want to build automated systems for money management, the barrier of entry will be significant in the legacy banking system.
>Or managing electronic assets (stocks etc) - blockchain significantly lowered a barrier for entry in those cases.
But the barrier for entry is high in those use cases precisely to prevent exactly the kinds of abuse and problems we've seen in the crypto space. And the blockchain doesn't magically alleviate the obligation to obey laws and regulations. You could try to design a system that circumvents them, but then you're back to the parent's point about illegality.
> Also, if you want to build automated systems for money management, the barrier of entry will be significant in the legacy banking system.
There are a lot of good reasons why there's a high barrier of entry to set up shop in the financial system.
Trying to sidestep financial regulations through using cryptocurrency/blockchain is at least trying to actively exploit loopholes in the law, if not actually illegal.
For example, when you are dealing with multiple small transactions where a potential for fraud on the buyer side is significant.
Also, if you want to build automated systems for money management, the barrier of entry will be significant in the legacy banking system.
Or managing electronic assets (stocks etc) - blockchain significantly lowered a barrier for entry in those cases.