[JumpCrisscross]

> How was, or is, this avoidable even now, and in existing monetary systems?

Transfer payments.

Historically made under the threat of violence by a populist king or warlord. Who, in almost all cases where the transfer payments continued, was swiftly replaced by a republic. Bitcoin turns the clock back to the feudal reality of land-owning nobles. We just made the cost of defending the land vanishing.