>At some point the crypto needs to be converted into USD
It is not a truism that "at some point the crypto needs to be converted".
A stablecoin like DAI obviates the "stability" reason for converting back to fiat and getting further involved with the financial system, and as more people accept crypto for goods and services, there exist fewer reasons to convert out.
I'm not some BTC maximalist who thinks you'll be buying your groceries in crypto anytime soon, but for anything that can be transacted online, or between friends?
We already exist in the timeline where if I want to buy a thing, I can send (with some care) mostly anonymous value to someone to pay for the thing, and there's nothing any government or other person can do to stop it. This isn't some future goal, this is right here, right now.
> as more people accept crypto for goods and services
This is not happening. It's been more than a decade now. I could also argue that the reason the few cases where you can actually spend cryptocurrencies have remained is simply that the volume is too small for the authorities to care, especially since they can just start regulating once it matters.
You're not addressing OP's point that in the end, you want to spend the currency within the legal system if you want to buy something other than cryptokitties. Or to go back to the main topic, you have to go back into the legal system if you want to buy shares. If the authorities declares that you have to buy your shares with USD, then you have to buy your shares with USD.
It is not a truism that "at some point the crypto needs to be converted".
A stablecoin like DAI obviates the "stability" reason for converting back to fiat and getting further involved with the financial system, and as more people accept crypto for goods and services, there exist fewer reasons to convert out.
I'm not some BTC maximalist who thinks you'll be buying your groceries in crypto anytime soon, but for anything that can be transacted online, or between friends?
We already exist in the timeline where if I want to buy a thing, I can send (with some care) mostly anonymous value to someone to pay for the thing, and there's nothing any government or other person can do to stop it. This isn't some future goal, this is right here, right now.