[graeme]

1. You can use dollars to pay taxes. Big difference from bitcoin

2. No one expects fiat currency to be an investment asset!

Why anyone expects the value of bitcoin to increase like stock ownership of a corporation is beyond me. And it has no intrinsic value like gold.

[eloff]

Gold doesn't have that much intrinsic value either. It's hard to obtain, but so is bitcoin. Gold has the advantage that it has some use in personal adornments - but I believe that's a marginal use. Bitcoin is easier to buy, sell, and store. I've said many times that the best description for bitcoin is electronic gold, not a currency.

[leppr]

Not all demand for an asset is tied to states. Most activity around Bitcoin is actually precisely about evading state controls.