ArnoldChippy,
I agree that the government will probably have to contend with more disruption. I don't think we are going to be satisfied with Bitcoin or any of the existing altcoins which don't make the mining pools anonymous. Also I don't think we will be satisfied with the existing Tor or I2P, which have been proven to not be anonymous as I predicted more than a year ago.
I
and history disagree with you that the government won't confiscate all the revenue as its revenues worsen (this leads to a Dark Age if the people don't stand up to this downward spiral of confiscation) and they need to meet their socialism obligations in order to remain in power.
Throughout history mainstream governments confiscate the wealth every time[1] as they enter economic collapse, is they confiscate everything (and start external aggression wars if they have a nationalist population in order to get them to sacrifice, i.e. China, Japan, and Russia today[2]). I am not talking about what failed revolutionary governments with failed military do, i.e. the communists in defeated Weimer Germany or Zimbabwe[1].
Btw, there is $200 trillion in global wealth to confiscate. The government can remain in control for much longer than you and I can remain solvent if they start confiscating from us.
Bitcoin as a virus can be easily controlled (no need to kill it for as long as government can regulate, tax, and confiscate it) as I explained in the prior post about regulating the mining pools. The people can't stand up and fight if their weapon is fundamentally impotent, regardless of how many people adopt it.
For those who say the government can't confiscate your private keys, my prior post says that it is irrelevant. They can block you from transacting, so then your private key is useless.