[scottnyc]

If you follow the money, Bitcoin does not replace fiat. If I bought $100USD of BTC on coinbase, that $100USD goes to someone else who sold me their BTC. It's still fiat. I'm not confident the governments really mind in that respect because the money is still here.

Where that money goes in the end? Some goes to speculators, and the rest goes to lots of ASICS, graphics cards, electricty bills and food for miners. But none of it is every actually really stored in Bitcoin.

[ryanwaggoner]

But as Bitcoin becomes more and more valuable, isn’t it actually eroding the value of other currencies? So someone still has your $100 but it’s worth a little less.