As more people leave the official economy every day, the fringes grow larger. The more the US clamps down on foreign banks holding USD, the less attractive the USD will be as a store of wealth.
How many people have left the informal economy to transact exclusively in Bitcoins?
Right because the USD is relatively more fungible for the time being.
> regulate Bitcoin into near irrlevance
That will just make dollars less fungible.
The Russian oligarchs go to Bitcoin coferences. It's on their radar.
Russia Sanctions: http://www.cnn.com/2014/07/16/politics/ukraine-russia-sancti...
Also, USD cash is more fungible than electronic USD.