| The three main reasons the article gives for why bit coin will fail: "Its value is uncertain, its legal status is unclear, and it could easily become valueless if users lose faith" Is this not also true of state run currency? Have we not seen massive deflation during the great depression, in Israel, in Russian and in many other part of the world? The legal status is an interesting one, but given that the feds got some 31million (and rising) USD worth of BTC from the Silk Road seizure I doubt they will make BTC illegal.... But it could happen in the future. Loosing faith, well believe it or not this is true of all currencies. That is why it's called Fiat, there is nothing other than faith behind currencies. So really the only issue is the legality, which basically translates into government regulation, which is what we already have for "state run currencies", so at worst BTC becomes regulated by the state and becomes more of a "state run currency". In some views I guess that is failing, but that means that worst case it will end up like cash but with a lot of technical benefits. I think the real issue with BTC is deflation, and that will probably continue for a long time. At least until all the BTC are out, if not for much longer. |