I notice a lot of people have this misconception that because the government can't control Bitcoin, it can't tax us and therefore we will no longer have roads, water, food, medicine, safety, or whatever other social goods they believe can somehow only possibly be provided through coercion.
Let's assume for a moment that every single person has converted to Bitcoins. And let's assume that it's completely impossible to tax people's Bitcoin transactions or confiscate people's Bitcoin wealth.
Okay, so the government will instead tax: oil, gas, land, imports, exports, copper mining, silver mining, retail purchases at big retailers like WalMart and Amazon, etc etc etc. Amazon still has warehouses full of products, which men with guns can confiscate or lock down in the event that Amazon doesn't pay their tax. FedEx and UPS still have a fleet of vehicles that can be frozen with guns if "shipping tax" isn't paid. Electricity can still be taxed. Etc.
So we may very well be approaching the day that people's individual savings cannot be confiscated (directly or through inflation), nor can their individual revenues be taxed. And that's a very good thing.
But that doesn't mean taxes are impossible -- it only means taxes will have to become (slightly) more moral. There are still many physical bottlenecks where taxes can and will be collected.
So for those of you who honestly believe a government monopoly on violence is a "necessary evil" -- who believe coercion must be employed against innocent people for us to have "the roads" -- who believe that having the IRS pick on helpless old widows is the only thing preventing modern society from slipping back into the stone ages: Don't worry, slave, taxation in general will not cease just because individuals have obtained a bit more power over their own personal finances. Your State will continue providing roads and shitty schools.
It's amazing to me how people get deceived in such a statist mindset. If you were to topple the North Korean government, perhaps the people there would ask,
"But who will provide tree bark for us to eat, and pots and pans with which to cook our own children?"---------------------------------------------------------------------
P.S.:
http://en.wikipedia.org/wiki/American_Letter_Mail_CompanyThe American Letter Mail Company was started by Lysander Spooner in 1844, competing with the legal monopoly of the United States Post Office (USPO, now the USPS) in violation of the Private Express Statutes. It succeeded in delivering mail for lower prices, but the U.S. Government challenged Spooner with legal measures, eventually forcing him to cease operations in 1851.
The American Letter Mail Company was able to reduce the price of its stamps significantly and even offered free local delivery, significantly undercutting the 12-cent stamp being sold by the Post Office Department. The federal government treated this as a criminal act.
Although the business was forced by the U.S. Government to close shop after only a few years, it succeeded in temporarily driving down the cost of government-delivered mail.
