Your scenario assumes a government that is more competent than a free-ranging pack of internet geeks and crypto experts. Given their track record, I don't agree. More likely is they will try their 'best' to fight the fledgling currency, leading to their loss of power to do anything about personal transactions and/or overall taxation.
In a desperate attempt to find relevance, they may actually have to start producing value and cut politician salaries to keep the capitol building and other government stuctures in good repair. Perhaps it may even force fiscal responsibility, restructuring the dollar to compete. However it turns out, their days are numbered and they better not waste them by attacking the very system that could save us all.
i agree with this:
Your scenario assumes a government that is more competent than a free-ranging pack of internet geeks and crypto experts.
...except one must note that there are really a lot of extremely competent people in government. the problem is, they are competent at
government - that is, at the system they're a part of.
perhaps it would be more accurate to say "...more
nimble than a free-ranging pack of internet geeks and crypto experts."
as for what the government is likely to do... i think they'll try the steamroller approach. they always seem to. it will fail - mostly due to the internationalization of Bitcoin and the animosity the US government has earned over the past 50 years or so (i speak as a US citizen, incidentally).
it will be an unsettled time.
but then, i think there will be some form of
rapprochement. there won't be much choice.
let's keep in mind that there really are some very intelligent and competent people in the US government - the president comes to mind, like him or not - and if co-existence is the best option (in the mid-term) they will take it.
