Bloodshed will indeed ensure.

Why am I posting this instead of just trading on it I dont know.

Government will move in on Bitcoin in 12-18months from now

Until then the price of BTC will go up as more services are developed for it and use increases, due to its natural competitive advantage over PayPal and other online money services

The bloodshed will then start.

First, MtGox will be shut down; their bank account will be frozen and their business & owner in Japan seized

All other bank accounts involved in exchanging Bitcoins will be frozen & similar fates will occur to their proprieters

At that point demand for BTC will be reduced because of reduced liquidity

BTC will go way down in price

BTC will still have value from here on and be used but only for black market goods, it will not reach mainstream appeal as long as governments oppose it

Any new exchanges will be moved on and have their bank accounts frozen

People will still mine BTC a long time from now but it will not reach mainstream appeal.

Until governments move in however the price will go up, so all buy in on the MT Gox and enjoy the party! Just no real prediction when its going to end, but governments usually move slowly. Expect alot more press about Bitcoin and publicity in the mean time which will also serve to drive up the price