> Once it's thoroughly demonized, they'll start going after people with bitcoin balances
How do you determine that someone has bitcoin balance?
> They'll probably also focus on methods for converting Bitcoin back into mainstream currencies.
This sounds more viable strategy: attack the exchanges. After all, the value of bitcoins comes from the fact that it is liquid - easily convertible to existing currencies and back.
However even shutting the exchanges down would require global cooperation from goverments and probably heavy internet censorship as well. That is because many exchanges don't even need any ties to the existing banking infrastructure, and can operate from any country.
How do you determine that someone has bitcoin balance?
> They'll probably also focus on methods for converting Bitcoin back into mainstream currencies.
This sounds more viable strategy: attack the exchanges. After all, the value of bitcoins comes from the fact that it is liquid - easily convertible to existing currencies and back.
However even shutting the exchanges down would require global cooperation from goverments and probably heavy internet censorship as well. That is because many exchanges don't even need any ties to the existing banking infrastructure, and can operate from any country.