How can Bitcoin affect the running of governments?

[Galahad]

This is a very simple question. I'm just wondering how can Bitcoin affect the running of government or shut the government down?

Some people talk about this with glee like it's a good thing (anarchists) but that just seems like a terrible prospect. To me we all survive on services from the government such as health care, fire department, dealing with crimes etc.

Also, I have to show you this because it's the funniest thing I've seen all day:

[hany103]

money laundering ?

[Galahad]

So people can just store as much money as they want in BTC and not tell anyone. So this makes tax impossible? Surely a government can still force a company to pay up if they have records of them not paying any tax?

Also, this will make criminals much more powerful. I really don't want to live in a world like that.

[mprep]

So people can just store as much money as they want in BTC and not tell anyone. So this makes tax impossible? Surely a government can still force a company to pay up if they have records of them not paying any tax?

Also, this will make criminals much more powerful. I really don't want to live in a world like that.

Well bitcoin isn't considered as currency so yeah you can store it.

[runam0k]

Surely a government can still force a company to pay up if they have records of them not paying any tax?

A big company dealing in bitcoin will account for payments in the usual way (which means converting each payment to fiat at the prevailing rate and paying any necessary taxes).

Small companies/one man bands might choose not to keep proper accounts/file taxes, but then they probably already operate that way with cash.

[bigdude]

loss of tax, loss of control, loss of big brother enforcement ... plus lots more

[mprep]

loss of tax, loss of control, loss of big brother enforcement ... plus lots more

That might be both bad and good in various ways.

[Galahad]

So under Bitcoin currency, what would happen in this scenario?

I get hit by a car and have to go to hospital. What happens?

a. I have to pay whenever I go to hospital and if I am homeless or poor I basically die.
b. There is still enough taxation for this (although things are tight as business men everywhere are basically hiding all their money).
c. Wealthy Bitcoin philanthropists pay for everything!
d. Something else.

[Anon136]

governments run? i thought we carried them everywhere.

[HigsonPP]

at this point i wont even entertain the idea