[gnaritas]

Yup, unfortunately libertarians and anarcho-capitalists have jumped on it like it's the solution to all bad government and a way to avoid taxation and have become religious about it. They're wrong, and completely nuts, but this isn't Bitcoin's fault.

[dcc1]

They are wrong, the blockchain is public, it is very likely that a bitcoin like technology be used by state actors in future to create tightly controlled currencies!

Imagine a state being able to charge sales tax at the point of each transaction! Or more disturbingly know exactly who buys what for how much and when if tied together with government issued ids and wallets. Or instantly calculate taxes due on income.

Its actually quite scary :(

In fact bitcoin technology or derivative could be used unfortunately to take even more control from people and economies! Its probably a good thing that in most countries politicians would balk at this since they wont be able to get brown envelopes if everyone in the state uses coins

[ewoodrich]

> instantly calculate taxes due on income

Uh, sign me up? The political complications of tax reform aside, return free filing would save millions of hours required for tax preparation, and it is estimated that between 8 and 60 million taxpayers would not need to file a return at all. And for the rest it would streamlined.

Of course, the IRS already knows 90% of your income information, without Bitcoin, because of 1099s, W-2s, etc.

[dcc1]

Which is how state controlled bitcoin like currencies will be pushed onto people, claiming it would save time/money etc, be more safe and secure etc.

Tho' I highly doubt bureaucrats in IRS or similar would rollover so quickly and put themselves out of a job!

Giving the state (or 3rd parties) even more control over currency and every day use that could be gained by a state run bitcoin like currency is very scary proposition IMHO giving them even more power.

[gnaritas]

Given the choice between Govcoin and Bitcoin, I'd imagine most people will choose Bitcoin. I can't see the state launching a coin successfully. Lack of central authority is one of the killer features of crypto.