[mycroftiv]

I believe there is an inevitable collision between the government's desire to control, regulate, and tax commerce, and virtual economies. It is hardly a secret that MMORPG items and characters are often bought and sold using real world currency. Players in Magic Online spend real world currency to acquire digital cards, which can then be exchanged for paper cards, and many brick and mortar game stores use this as the source for cards they sell. In theory players could easily use games such as these for money laundering and tax evasion. I don't think the government will shut down MMORPGs, but I believe that government interference and regulation of game economies is inevitable as they grow.

As for Bitcoin, you can research the legal history of various "digital currencies" and you will see that there have already been problems in this area. The purpose of Bitcoin, a decentralized and unregulated anonymous medium of exchange is obviously contradictory to the government's aims. It all boils down to the fact that governments want a monopoly on currencies and want to be able to monitor and tax economic activity. Digital economies are growing rapidly in size and social importance and they are no more likely to be allowed to flourish unregulated than the free sharing of copyrighted media was.