[klipt]

> The only utility it has is as a transfer of value from one place to another

Which is a lot of utility. Consider that in the US we still write physical checks, and paying by credit card costs the vendor a few percent every time.

However that utility is not limited to bitcoin. You can set up a similar algorithm using a slightly difference hash, and voila you have bitcoin2. Some people are worried that bitcoin is deflationary; I'd be more worried about alternatives popping up and inflating the whole supply. Especially since current bitcoin favors those who started mining early (and are now millionaires?) - why adopt a currency that makes other people rich when you can just mine your own new currency?

In the end, it depends what the crowd decides to do with it. The value of fiat money is always subjective (although at least USD is backed by the fact you can use it to pay your taxes.)

[guard-of-terra]

There are a lot of alternative currencies: litecoin, ppcoin, terracoin and so on. You can easily mine your own, but it trades at 1/100 of BTC usually.

"Mine your own new currency" -- pre-mining coins before releasing your coin to general public is considered very improper act.