That might be true, though I haven't seen any evidence to suggest that. But my point wasn't that regulation is inefficient - it's that libertarians can be quite a bit more extreme than the OP thinks.
>>That might be true, though I haven't seen any evidence to suggest that.
Libertarian paradises aren't always theoretical. See early bitcoin, and the commonly cited Somalia. On the opposite end, known authoritarian-tightass state China currently has the most efficient capitalist economy the planet has yet seen.
While I can't disagree with that, I still think it's relevant to point out that as bitcoin's controlling powers have become increasingly regulated, so has bitcoin's stability.
I think you have cause and effect reversed. The regulation came in as the network experienced serious problems with the reliability of transactions. Which tracks with history of money and market economies.