He's assuming Moore's Law is upheld (and it isn't)

What? The video makes zero mention of Moore's law.

he's assuming blockchain currencies are not able to be artificially regulated (they are presently -- try buying a bitcoin or cashing out any significant amount)

Again, where? Of course he realizes that they can be artificially regulated (and in fact some regulation is welcomed), but the point he is making is that it will not succeed in the long term if they attempt to do so in malicious ways. If you apply too much downward pressure with regulations, people will just circumvent them because they have the freedom to do so because the technology gives them that power.

(they are presently -- try buying a bitcoin or cashing out any significant amount)

I buy and sell Bitcoins on localbitcoins with cash, and have done so for years. It's VERY easy, and there's zero regulations involved. You can do it with bank wire transfers as well, and once again, no amount of regulations are applied.

and more businesses will be willing to accept it (they aren't)

They are, actually. The number of businesses that accept Bitcoin has been growing since it's inception, not sure why you're claiming otherwise.

I own a small amount in cryptocurrencies and I've found, on the broad scale, their application is limited.

Elaborate.

More importantly, if I was ever in the position to transfer from a cryptocurrency to a regulated fiat currency (such as USD or GBP), I would immediately be struck with having to identify myself and now I have a pretty heavy paper trail.

Wrong, localbitcoins website makes this extremely easy. If you wanted to go through a registered business to do it, sure, but that's your choice and yours solely.