Whatever the truth is, why hasn't fiat been 'banned' for being used bu drug lords and mobsters, terrorists and governments to wage war on humankind? The media seems to be trying to play foul as usual by tarnishing Bitcoin because it upsets the establishments that be and of course who runs the mass media corporations anyway? So I think it's a lod of nonsense that there is so much fear being whipped up around Bitcoin and its uses. Unfortunately you get the best and worst in human nature, some will use bitcoin as a force for good, others foe evil, it's as simple as that really.
With fiat you have something like regulation after the fact. With Bitcoin they are trying to regulate before it gets too big. They've been relatively coy on Bitcoin and do not seem to be using the obvious tools to regulate it. My suspicion is that they figure if they treat it as just 'weirdo internet money' that does not even get proper laws that people will ignore it.
