> its pretty hard for a cryptocurrency to be seized during a traffic stop.

If one became popular, what magic would prevent it from being added to the same software they use to extract other information from phones?

The magic of memory. They can't coerce you to divulge your password for your wallet.

The government is doing a nice business in seized bitcoin, thanks. http://bitcoinist.com/us-government-to-sell-over-2000-seized...

I didn't say the government couldn't seize bitcoin or cryptocurrencies, only that it is a lot less likely if you get pulled over for a traffic stop. If law enforcement conducts a raid or can otherwise prove someone has been using cryptocurrencies for illicit purposes they have every right to seize it.

> Incorrect application of civil forfeiture laws is one very good reason to

Those have their own drawbacks. Digital currency can often be tracked (not made to be anonymous). They might or might not have high currency fluctuations, security issues (could be even the device / site you're using), high transaction costs, etc.

If you already have cash it seems easier to just do a bank transfer (at least it is within most of Europe).