Bitcoin won't help you here: you still need to convert things to fiat to get anything done. And if shops start taking Bitcoin, the government will simply regulate those payments as well.
Holding your savings instead of entrusting them to a bank prevents the government from freezing them. If you try to do this in cash, you lose the ability to transmit them over the internet, and it's easy enough for burglars (or enterprising traffic-stop cops) to just walk away with your savings. Bitcoin allows you to hold your savings without losing the ability to spend them.
It's true that you still need to convert them to local currency to spend them, same as US dollar bills, which are the popular savings vehicle here in Argentina. Around here, mostly the same networks of illegal money-changers handle dollars, Bitcoin, and gold jewelry, though there are some that only handle one or two of these.
I disagree. the government can tell (and has told) everyone that certain bitcoins are radioactive, making it hard or even impossible to spend them. There was a Matt Levine article about bitcoin laundering. It is much harder than I thought.
The problem is that, even if you think this is the kind of thing the government should be able to do, they haven't told me which ones are "radioactive". So if someone uses one of those bitcoins to buy something from me, I might have trouble spending it afterwards. Failures of fungibility like that are potentially a big problem for a currency. So far they're only a small problem for Bitcoin, but as these examples show, they have the potential to become significant. That might create pressure to move to a coin like ZCash, Monero, or Mimblewimble which has built-in safeguards against such things.
how much harder. If Canadians government make some bitcoin radioactive i’m sure bitcoin trader in china would not mind giving me ETH in exchange for some bitcoin.
The US government definitely does not regulate the guy downtown who exchanges my dollars for pesos, except in the sense that they could place economic sanctions on him if they decided he was a "terrorist" or something.
You still have a lot of options with crypto even without the exchanges. I pay for DNS and my VOIP service with it and could pay for a lot more if I had to.
It's true that you still need to convert them to local currency to spend them, same as US dollar bills, which are the popular savings vehicle here in Argentina. Around here, mostly the same networks of illegal money-changers handle dollars, Bitcoin, and gold jewelry, though there are some that only handle one or two of these.