imo, just because the current monetary system relies on a lack of privacy and giving excessive controll to a small group to protect it's users from theft and fraud doesn't mean that it's not worth while to explore a more preventive approach to these matters that stops the problem from occurring in the first place rather than trying to clean up the mess after the fact and ,as a result, making a whole new set of issues.

Can't say much about usd as the multiple dozens of sanctions imposed on where I live makes it practically impossible to use it as anything other than a store of value but bitcoin and cryptocurrencies are pretty good I guess, not very user friendly and the transactions can get slow and expensive when the network is congested but they tend to get the job done.

There currently are bitcoins and wallet that are blacklisted by the government but you generally don't want that, once you block or partially block the usage of some coins they will start being traded at a discount, and you'd end up with individual bitcoins being worth different values than eachother.
One of the main reasons why currencies work is fungibility, you can't break one of the main properties of a currency Judy because someone's funds got stolen.

First if all, you're completely ignoring the fact that the great majority of people, either knowingly or unknowingly, go into mining as a lower risk way to invest in crypto. Yeah, you won't make as much coins as you would've just straight up buying them but you'll still be able to ride the bull run and if the market happens to drop by 80% (assuming you didn't buy your rigs at inflated prices during a mining craze) you can still sell your hardware for 50-80% of your initial investment. It's almost impossible to invest crypto into new mining equipment and end up with more crypto than you initially started with because you're competing with people who are putting fiat in mining. And it's probably going to stay this way until the price stabilises for good.

Secondly, other than a small number of people in northern america/ europe most people never got to the point of mining at a loss since they're paying on average around $0.03/ kwh, maybe up to $0.05/ kwh in a relatively bad scenario.

I haven't really had time to do anything crypto related this year since It's my last year at school but I'm thinking about mustering up a manageable amount of money and building a couple of decently sized gpu rigs now that mining profits are looking better and small miners have the luxury of getting generously discounted cards from miners that are selling their rigs. I just hope the market doesn't move too fast and we don't get to the hype cycle until at least the end of summer/ autumn.

Iran

Yeah, I do only pay $0.03/kwh though.
I'm actually thinking of starting a small miner hosting service once I manage to free up some time and interest in mining rises up a bit since $0.01 /kwh electricity isn't too hard to get here.
That being said roi is pretty slow.