[cucumber3732842]

This comment ignores the cost of deploying government violence. In most of the world the government cannot "just" rubber hose every petty criminal on the basis that "he might have some crypto he's not telling us about". The people would not stand for it.

[Gigachad]

I think you misunderstood my comment. The scenario I was thinking of is something like a blockchain contract that declares you own a block of land. If a hacker stole the NFT land contract, the government and society would still agree it belongs to the real owner and thus the blockchain out of sync with reality.

A smart contract can't physically secure ownership of land.

[JuniperMesos]

Even if the people did stand for it, it still costs money and human effort for the government to pay its police employees to do the rubber-hosing - and there are principle-agent problems like government agents being susceptible to bribes (perhaps in cryptocurrency!), being too lazy to enforce the written laws, or having personal scruples about cryptocurrency use.