At some point, it will become cheaper to pay for Bitcoin devs to live in hiding from nation-states. Afterall, if a nation-state can't find you, then lawsuits are futile.

But a longer-term problem is that nation-states will eventually try to directly attack Bitcoin developers in a vain attempt to harm Bitcoin. Imagine being a developer and getting audited by every tax agency every single year. You'd have no time to write code, and the stress would give you a real heart attack.

But constant tax audits are just the tip of the iceberg. Nation-states can easily seize houses, cars, and other personal property (e.g. computers) by merely claiming that those things were used in the commission of a crime. And since Bitcoin is used by some criminals, the courts would say, "ya, it makes sense to seize computers from someone developer a currency that enables crimes."