Then we are doomed to lose. They will ban the possession and usage of bitcoins, they will subpoena ISPs (successfully), they will devise methods of tracking who is likely to use them, and the same machinery that makes search and seizure of narcotics from individuals so profitable will, with a slight change of its gears, shift to grind miners and traders in their teeth instead of growers.
And then people will use Tor for bitcoin by default. Or bitcoin will change its protocol to evade this. Or Bitcoin will be made illegal, but someone will just start a new blockchain.
They will find a way, if we do not have the general public backing us. This isn't a truly anonymous currency. We all know that.
We don't need the general public backing us. We need enough people backing us to continue to use the currency. The number of people who understand that whenever the government speaks about drugs in any way that they are lying is pretty large. I would be willing to bet that for every person who believes the lies, there will be at least one other who has never heard of bitcoin and looks into it to fact-check the government lines.
When I speak of corruption, I am speaking of how the united states dollar has come to possess a certain sinister quality to it. It is managed on the macro level by organizations who have every advantage to keep the people using it in debt. We are a country composed of debt - in essence an economical feudal tyranny, with lords, knights, and peasants who are forced by necessity to serve. Their whips and prods are debt and interest. Their collars are credit. Bitcoin could challenge this, but only with those serfs behind it. They will not rally to your ideology because they believe drugs to be bad.
I understand your ideology. Do you now understand mine? We have different motivations in our support of Bitcoins. Let's leave it at that, for now.
I think you grossly overestimate the number of people whose thoughts on drugs end at "Drugs r bad!". And it doesn't take a lot of work to point out that it's a freedom thing, not a drug thing.
Also, despite BitTorrent being used primarily for illegal purposes, there doesn't appear to be much traction for banning it.
What if what Silk Road does isn't illegal in its country? Just because something is illegal in the US doesn't make it illegal everywhere. Nothing ties Silk Road to any one country, and certainly not the US.
This is true, and valid, and as unfortunate for the health of Bitcoin in the US as it is fortunate for Silkroad's well being everywhere.
The US is not the world, and if the US bans Bitcoin but the rest of the world doesn't, it's not going to be a problem. For Bitcoin, that is. The US might find itself in a bad position.