It's even better than that. The prison system works because people in general want to avoid it and are easy to scare. When 100 people protest against taxes you can beat half of them into submission and throw the other half in jail. Things start to change when it's 1000 people as you can't just put that many people in jail. Most jails are already overcrowded and are forced to release the smallest offenders early. We can change things if we want to but we need to work together on this.
+1. Prison system has the same vulnerability as any website against DDoS attack. People just don't understand it now. Because prisons are government's most severe argument against it's opposition, prison system's collapse can mean collapse of the whole govt also.
To people who want to pay taxes from Bitcoin: are you sure the govt won't confiscate your earnings or apply large fine along with taxes because they can consider your Bitcoin earnings as illegal business? If so, don't be so trustful - there were already precedents, in Russian and Ukraine many times.
Most countries aren't Nazi Germany, though. Most Western governments will have no legal right to even try to attempt to ban bitcoin, and they'd be foolish to even try, because ONE It won't work, and TWO they'd just be missing out on millions upon millions in taxes. Most Western governments will be more than happy for you to use bitcoin if you're going to be paying your taxes and if you do pay your taxes correctly you should have nothing to worry about. Bitcoin has made thousands of people millionaires who wouldn't have been otherwise so if you're paying all your capital gains taxes this is money out of nothing for you and the government so they'll be more than happy to accept your bitcoin gains. As I said, just make sure that all your taxes are in order because if they can fine you for not paying the correct amount they will, but you likely wont be thrown in jail for this unless they can prove you have been deceptive and even then in my country at least it would still just be a fine not prison time.