[bfell]

There seems to be a common fallacy that is propagated by media that bitcoin is untraceable. A visit to blockchain.info pretty easily dispels this myth. Bitcoin is anonymous (in the same way that cash is) but it is not untraceable. If money being exchanged to/from bitcoin is coupled with the same money transfer regulations as standard currency it ends up being more traceable than standard currency because there is a log of all transactions. This is likely why there won't be much resistance to bitcoin from regulators as long as they can control the endpoints.

[Aqueous]

Yes, the opportunities for forensic analysis on BitCoin are much greater than in a traditional currency where money can disappear into the void and re-enter the economy somewhere else without any word on what happened in between. In some ways I wonder if criminals of the future won't prefer the dollar to conduct their illegal activity.

[simplemath]

Physically moving dollars is the hard part of conducting black market business in dollars.

Obscuring a wallet address is far easier than physically smuggling cash.