I have great respect for Martin Armstrong's work.
However, when it comes to the topic of Bitcoin, he seem to be a little too pessimistic, saying the government can shut it down anytime it wants.
I wrote him an email asking who he would think the government could do this, but received no reply until today.
Anyone with more info?
He says very little about Bitcoin, but he sees the matter from a pragmatic viewpoint: crypto currencies - that allow hiding the money from the tax man - will be stopped by the government. Government will collude with the Bitcoin foundation or just simply direct them to do it and the protocol will be modified to implement features to enable more efficiently track of the money (but even in its current form BTC is a god given gift for the tax man as by definition everything is in the blockchain and traceable.)
This is what I also am thinking: Governments would be pro Bitcoin because everything is being recorded in the blockchain, making money flows easily traceable. I think the government will put certain regulations in place (e.g. every citizen has to have 1 Bitcoin address that is known to the government to which his income has to be transfered) and Bitcoin still survives.