I can’t predict the details, but maybe I can predict the limits: how far things can go in the absence of some law of physics to stop them, and trends determined by economics.
I can predict with fair confidence that 50 years is an absurdly long perspective, by looking at the recent decades, and noting that the “steps” you mention are coming closer together.
There will be no state, and it won’t take 50 years.
One other thing:
True, but note that “the edge” of a successful, virtualizing technology gets built out over time - it expands to engulf territory that previously was high-and-dry in “the real world.”
Example: Bitcoin, at one time mainly of use as an in-game currency at Mt. Gox, difficult to exchange into any other form, is now used to buy at large online retailers and to pay for meals at your local cafe.
Assuming that Bitcoin continues to be used (and I think it will, thanks to Blockstream, and regardless of some upset people) then it will, perhaps in conjunction with banking within SAFE, become a settlement mechanism by which wealthy people can transact most of their financial dealings away from the non-virtual edges, those interfaces where the state officials lurk.
You see, it’s at the edges where there is user pain, which prompts both geeks and greed-heads to dream up ways to alleviate that pain and absorb those edges into the virtual network, like the tide coming in.
Consider darknet markets. They haven’t come anywhere near their potential because their lifespans are so short, due to the shaky security they enjoy on Tor, and even that security had to largely be built by their internal, hired developers. With stronger security baked into the network, and increased staying power, such markets would attract supplemental services such as shipping and banking. For example, I’m thinking that Seneca’s Clikes might just end up being used in ways that their creator never imagined: a web of trust might be a dud in a SAFE version of Reddit, but a killer-app for trusting service providers, such as delivery services for illegal goods who need to be trusted to deliver goods in a verifiable way (signed-for) with no questions asked, perhaps even insured and bonded.