So are cash transactions.
>practically impossible to tax
So are cash transactions.
>unappreciated by most governments
So are cash transactions [0].
>it's not going to survive if it does not make compromises and become regulated, traceable, and taxable.
Bitcoin is a protocol, that can not "make compromises". Can Http make compromises?
[0] http://globaleconomicanalysis.blogspot.ca/2015/03/cash-dinos...
Cash transactions are taxed at the local level (read as gas stations, sales taxes) and reported or maintained as running record when deposited or withdrawn for the IRS to see.
Yes, cash is unappreciated by most governments.
The Bitcoin protocol or a variation will remain but changes will be made to it that the governments will agree too.
that's not because of cash itself, it's because of storing money in a bank account
So is Bitcoin. https://blockchain.info/
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Enjoy.