The government's excessive power stems from its monopoly on currency issuance. At a deeper level, its authority is upheld only by the public’s belief that government is necessary. Since Bitcoin is inherently anarchic in nature, the U.S. government will inevitably turn against it again.
If people truly realize that Bitcoin is real money and that the dollar is fake, why would they continue to use dollars and go through the hassle of exchanging them? Workers would demand to be paid in Bitcoin from the start, and merchants would insist on accepting Bitcoin for payments. Of course, this won’t happen overnight, but in a world where fiat currency continues to lose value, it is an eventuality.
When that time comes, people will also realize that transacting in Bitcoin could allow them to avoid paying taxes. That’s when the government will step in and take action.
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