The current money systems are profoundly corrupt.
@David Hicks, "Add to that that making bitcoin transactions and conversion into 'real' money illegal acts would be both easy as a stroke of a pen and effective in massively reducing the potential audience and therefore its viability as a currency."
Bitcoin is therefore still a threat to them, because they will act to stop it. If it wasn't a threat, they wouldn't need to act. As much as you don't like to admit it, Bitcoin is a threat but one they will not allow to grow, but it is still a threat.
@David Hicks, "They may not control the currency, but they sure as hell made sure they got the lion's share of it early on."
The rich and powerful always want in on the latest ways to make money, so they can also share in its riches as well.
@Schultz, "Taxes apply to the rich and powerful too."
Google Oz slips A$600 million through tax loophole
http://www.theregister.co.uk/2011/05/04/google_oz_tax_loss/
Google slips $3.1bn through 'Double Irish' tax loophole
http://www.theregister.co.uk/2010/10/22/google_double_irish_tax_loophole/
Are you learning yet? ... Who is really paying the taxes, as these companies are evidently not.
@Schultz, "If you destroy the ability to tax, you'll end up with cutthroat capitalism verging towards a feudalistic entrenchment of those who control the capital."
Oh yes the old take it to an absolute absurd extreme and then attack that absurd extreme. In other words, you are using a straw man argument.
The money systems are profoundly corrupt. Not just a bit corrupt, they have centuries of entrenchment into our society, so they can leach money out of all of us in so many ways. That is what has to stop, but its fools like you who prevent that happening, as you argue against change to the system. So what do you really support? Therefore even though you deny it, it looks like you really want the cutthroat capitalism, because you don't want it to change.