sfnuop

We are in the nascent stages right now, but the indications are pretty positive. Nassim Taleb, the author of the Black Swan, recently remarked about its importance in his recent AMA: "Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative."

And I think that's really the big takeaway. Do we need a currency that gives more power to the people? Yes. Will it be bitcoin? It's, as of right now, the most promising option. Will governments try to stop it? Possibly. Would they be able to stop it if they tried? That seems unlikely.

We also have to remember why bitcoin works: its digital, decentralized, fungibile, easily transferable, and highly durable. These properties offer immediate value as a vehicle for value storage and wealth transfer. Of course, something better could always come along.

But the longer bitcoin sticks around, the more credibility it will have and the more unlikely it will ever go away. The current bubble could pop, but there's nothing that indicates it's a fad. Check out my piece on why bitcoins are just like gold.

Thanks skrivitor! Think that sounds about right, given the current frenzy. I'm fairly bullish on bitcoin so it doesn't seem too crazy to me. Most of the credible companies in the ecosystem, especially the exchanges and processing companies, are doing quite well for themselves. Of course, some kind of government regulation will always be an investment risk.

CC fosho.

That's an excellent point and its inevitable clones and competitors arise. Competition is generally a good thing. Back to the gold analogy, silver was immensely popular. We like copper too. In the end, society gets to decide, which I'm okay with.

Umm... what stash?

I hadn't heard of the MintChip, thanks for the heads up!

I'm not surprised! Following the rules is the only way forward. Here in the US, the FINCEN guidance this week was a big deal but this sort of thing was more or less expected. AFAIK, from the various companies that I've spoken with here, they've been similarly diligent, whether its registering as an MSB or following AML regulations. So ultimately, the guidance had very limited effect on their day-to-day. That's really the only way to run a legitimate business, bitcoin or other.

I think what we will see, however, are more companies moving to countries with less regulations, and I know of a few guys who are moving or are preparing to move out of the US.