Quote Originally Posted by Xmac View Post
It's superiority is in its potential, velocity, open ledger and advanced security.

Presently, the military can attack countries that openly stop using the dollar. It is ineffective, however, for stopping individuals and companies from using Bitcoin, assuming the companies have state of the art security.

Silk Road, an underground website that was known for selling and buying anything, was shut down by government authorities and in just a few months, Silk Road 2.0 was launched. Then, that was shut down and 3.0 was up in a day...or two?

But that's not the end of it. Open Bazaar will make any interference impossible because it is an open source market place, which, being de-centralized makes it impossible to shut down.

So, the military won't play much of a role, if any, in enforcing the dollar or stopping Bitcoin.
Bitcoin's traceability is questionable at best (anything electronic can be manipulated). Mt Gox ring a bell? (still haven't recovered peoples money and the place is out of business, so hard to go after)
Also anything webbased is subject to needing access (which can be hacked or traffic shut down as Korea was recently). That isn't to say there isn't other tech out there, to mirror bits (think of Echelon and such), physical seizure, lack of regulation etc. The goverment seized all the Silk Road bitcoins (we discussed that before) and can seize any property (property is NOT innocent until proven guilty), let alone they haven't decided on how they want to deal with it from a tax perspective.
And it has the same problem as ANYTHING that one wants to use as currency, both parties need to accept and believe in it.