First and foremost, investments and cash holdings should have some degree of diversity. It is absolutely insane to put all ones funds into one vehicle, especially Bitcoins, where it is unclear what further steps government authorities will take against this instrument.
The shutdown of Silk Road and the arrest of Ross Ulbricht, plus a number of Silk Road dealers, shows that even the most careful operators were not careful enough to escape being caught by the government.
Unless extraordinary precautions are taken, Bitcoin usage is an open book. Once the government knows your bitcoins, it can follow your blockchain activity from the day you bought your first bitcoin. And don't tell me your bitcoins can be mixed via outfits that will disguise you as the source of your bitcoins. How do you know such bitcoin mixers aren't being monitored just like Silk Road was? How do you know that the some of the mixers aren't government investigators that are tracking the bitcoins they give back to you? Bitcoin mixers strike me as exactly the type of activity that government regulators would consider money laundering.
Bitcoin purchases are not, in other words, going to allow you to escape the prying eyes of government, rather it will make tracking your every move that much easier.
Now consider gold.
An old Swiss proverb goes:
Gold has no smell.It means that gold can not be tracked. It doesn't reveal where it has been. If one gold coin is discovered on a person, it does not link back to the other 1,000 gold coins back at a person's home. It does not reveal where the coin that is on the person came from in the first place. Gold is a much more of a privacy oriented vehicle than Bitcoin.
This doesn't mean that you shouldn't have any bitcoins, like I said, diversification is important, but I would hold $100 of gold and silver to every $1.00 in Bitcoin.