Re: Did China just legalize Bitcoin, clarify regulation, for its free market use?
Now you must already realize that for 1) large businesses 2) medium sized businesses 3) small businesses bitcoin is out of the question.
For the transactions you speak of we have two problems.
1) You have to show how you make a living (plumber). If you have stuff that cant be afforded with the income you show, governments will pursue you and put you in jail.
2) If you decide to buy virtual goods then these goods cant come from any small, medium sized or large business. Most virtual services are free anyways.
3) If wealth can only be spend on virtual goods than that wealth is useless if its significant (again if you have 2 million and can only spend it on virtual goods from tiny companies then these 2 million are useless). Rather pay taxes and be able to buy real stuff.
4) Most people wont risk going to jail if they only safe small amounts.
1) You think there are people driving around the town, entering people's houses and checking what stuff they got inside to tax them? Never heard bout that...
2) Escrow isn't free, data recovery as well, and try to get a good website or house project made for free.
3) 7 billion people doing 1% of their trades in BTC seems significant enough for me
4) They won't put anyone in jail if BTC becomes big. If you can't fight them join them
And as for the power of the internet - the piratebay guys are enjoying their freedom. Somehow your jail and execution talk doesn't scare me.