It works 2 ways.
It's not an easy time for ico's right now, when people are seeing 100% gains in a few weeks from just holding the major coins.

Yeah, it's like a chicken and egg situation.
But a coin backed by a growing portfolio of income producing property would be cool.
And reducing the coin supply could increase value.. as supply reduced and investors saw the money raised was going to good use.
Perhaps there is some sort of formula to get the balance just right, and allow solid growth.

When you look at the crazy marketcaps of some alt coins based on little but hype, imagine instead a good chunk of that value being backed by a genuine portfolio of commercial property paying dividends to the coinholders, or being used to buy/burn more coins.

First big crash will come when the supply of newbies dries up.
There are still thousands a day signing up and pumping money in right now with all the hype.

But first big crash could see the casual investors trying to withdraw in a panic, and failing.. if there is a run on the exchanges.

Ether could hold its value better when bitcoin falls.
There are hundreds of programs getting built on it for the contract ability, so maybe not quite so purely speculative.

Bitcoin can be tracked, but there will likely be a hugely increased black market economy similar to the cash economy right now.
Any completely anonymous coin will likely be banned for registered companies.

Major purchases such as property and cars still need ownership records.
Companies still need to provide tax records for salaries.
People still want security from fraud.

Even with private / freelance sales.
Everyday crypto use will only happen when transfer fees fall to a few cents, and there is more stability.

Right now, would anyone do a $1000 job for bitcoin ?
Knowing the price could drop 20% in a day ?
That's just gambling.

Some folks might accept crypto, but would probably want it converted into regular fiat currency immediately.
Prices aren't going to keep going up forever, and there will be a LOT of caution after the first big crash, and run on the exchanges.
 
So I think the governments are still going to get their tax share.
I do think income taxes will fall to compensate for increased black economy, and sales taxes will increase.

A bit of regulation might not be a bad thing.
For real world use, on larger transactions especially, people need a currency that can be tracked and trusted.

If someone is scammed, to think there is a chance of getting their money back.

Online casinos actually have better percentage payouts on the games - which makes sense because costs are lower.
But the odds are still in the casino's favour, and you can play a lot faster..

So unless you know when to stop after a winning session, you will soon feed it all back.

Will the ico be extended if the value raised is insufficient ?
Seems like a good idea, but 50% of the proceeds so far won't buy much investment property.

I like the idea of a coins value being backed by real assets.
Perhaps if a real estate coin was on a major exchange, and a certain percentage is cashed in each month to buy more property, the value could rise with the overall crypto market.

Anyone got any info on what percentage of the general public in US and EU hold bitcoins now ?
Maybe compared to stocks and shares ?
The price is moving with hype and thousands of people getting in each day.
But what is a realistic limit ?