The cryptospace will become fragmented similar to how the financial system is fragmented instead of being one whole ecosystem for payments and finance for users without the banks.
the regulated space---exchanges---will become more fragmented, yes. my hope is this will simply drive more and more people towards the p2p economy. the feds can regulate
businesses to shit, but they can't stop me and you from transacting with bitcoin, anymore than they can stop us from using cash.
Agreed, however, we have also witnessed that much of the people in the cryptospace are only here to speculate on their favorite coins and sell them for fiat. I predict they leave when the regulatory crackdown begins and look for the next hype. Reddit users appear to be in on Gamestop stock and other equities hehehe.