I fully grok the idea of network states as online phenomena.

I struggle with their transition to the physical world.

The assumption is people we’re close to digitally are the same people we’d choose to live close to physically. 

In my experience the overlap is small at best. 

What am I missing?

imho it would coalesce over a long time frame. Unfavorable crypto tax jurisdictions are already incentivizing exits (e.g Japan).

I imagine digital nomad visas (e.g SE Asia) start forming communities that crypto folks would seek out.

It doesn’t have to be one location, but many across the world. An archipelago.