Comment: While what you say is true,

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In reply to comment: One need not use an exchange. (see in situ)

While what you say is true,

While what you say is true, it is equal to money laundering -only so many people would be doing it and therefore the cost of it would be enormous. It is quite expensive, and will only become more-so as time moves forward. I think it was on bitmit, I saw a $20 bill for $25 -value of bitcoin- plus postage. If there ever was total control of the exchanges then one could easily see a $20 bill being $50 -value of bitcoin- or more.

This leaves people with the option of having two jobs, one which pays in bitcoin and one which pays in government fiat; that doesn't sound like much fun. Since government will never accept bicoin, this means that there will be a main currency -one which is mandated- which would be government fiat, and then there would be a secondary currency -one used between individuals- bitcoin. Since government fiat is going to be necessary anyway, most people will never bother with using the secondary bitcoin -unless, government fiat were not accepted by any places other than government. However, this is highly unlikely due to the highly dependent nature of modern business on government; therefore, only secondary businesses would even consider accepting bitcoin -the large companies wouldn't.

Since that is the case, then one can clearly see that bitcoin is nothing more than a method for getting the digital holdouts -black and grey marketers, anarchists, preppers, etc- to switch to digital money. Since hard 'money' is already tracked from the dealers -with the exception of small transactions between individuals, coin stores, and pawn shops, hard 'money' would be very easy to confiscate after the holdouts moved to digital currency. Thereby, creating the unthinkable situation where everybody is forced to use government digital fiat; that sounds like such a joyous occasion.

There have also been legislation offered in Illinois to mandate that the transfer of a commodity aka gold, silver, or whatever require a bill of sale and ID. Thereby making even the transfer of the smallest unit of trade, of a commodity, tracked.