The prisoners dilemma describes a scenario where individual decision-makers always have an incentive to choose an action that creates a less than optimal outcome for the individuals as a group.
When applied to int'l affairs, it explains why countries fail to cooperate even when it is in their best interest to do so. When it comes applying the bitcoin standard to nations, we can see the theoretical future of bitcoin. Countries will not opt to ban bitcoin, others will adopt the bitcoin standard. Nations, one by one enter the bitcoin standard as that is where the incentive is.