Comment by MarcusBrutus

Bitcoin fails to satisfactorily answer von Mises' regression theorem. It also has no scarcity since it can face competition by an infinite number of similar conceivable algorithms / block-chains / virtual currencies that offer much the same features, regardless of how hard its own mining gets. Not to mention that once it is perceived as more than just a nuisance by some major government it will be shut down in a heartbeat. Future generations will laugh at our incredulity just like we make fun of the Tulip mania (which had more substance to boot). There is real, almost insatiable global demand for a currency with intrinsic value and scarcity that cannot be inflated by fiat. But given that such a currency will antagonize major governments it will likely not be a crypto-currency but rather a currency backed by some sufficiently powerful country. I am actually expecting the Russians or Chinese to launch a 100% gold-backed currency within the next 5 years. Failing that, when the EU breaks up the new Deutsche mark will be a good alternative. Any of these developments will pop Bitcoin's bubble.