The places where Bitcoin gets used have felt little disruption as the latest batch of detractors proclaim the end. Mt.Gox isn't stealing anyone's money (now there's a Bitcoin-related bet I would take).

Try to think of Bitcoin outside of the price swings. It's not new to the system, it's just gotten to be larger each time as it is chased and adopted.

certainly don't tell him this answer

Almost everything you said could apply to cash as well, OMG it's completley annonymous, that could be blood money!

The only good point is the volatility. While it's swinging so rapididly nobody risk averse will begin accepting it in lieu of other more stable currencies.

Hey, let's say I had a small amount of bitcoins and wanted to sell now and buy back when Mtgox opens (because I think there will be a dump), what's my best method?

I have BTC-e and Mtgox accounts, but have never verified either or hooked them up to cash in any way. (I bought my BTC from a friend).

USD isn't remotely anonymous

Cash generally is.

wat

Want to buy $3,000 of btc. Have Wells, BoA. PM me offers or for my Skype info.

Have refs.

Large cash holders are charged an anonymous fee of slow depreciation (typically storage fee too.)

You are definitely correct. If you hoard a physical pile of cash, that would be completely anonymous.

Not sure how you would acquire it in the first place through legitimate means, but it would be anonymous.

I don't think we entirely disagree on how things are. I certainly don't think that bitcoin's success is set in stone, but I do think it has a considerably better chance of succeeding than you do.

However, your examples of things that bitcoin are "just an electronic version of" all fail at various levels. Bitcoin is not intended to be local, which is the entire point of most local currencies. Bitcoin also doesn't involve a central mint, can't be inflated past its built in curve, and can be transferred over the internet. These are actually the two example properties I originally gave and they aren't both present in your example systems or e-gold.

That said, e-gold is an excellent example of the US government taking down a competitor system it didn't like (although e-gold was obviously completely centralized, and there's no mint to indict with bitcoin).

poker rooms across the country

not sure how to aquire cash legitimately? wat??

also WTB bitcoins, up to 10kUSD worth. Have all major poker sites and skrill, BOA, or bankwire. PM me offers

Interesting but not at all relevant.

That's why cash-centric businesses are great for money laundering.

talking about hoards of physical cash is drifting away from the main point.

there is a distinction being drawn between bitcoins (completely anonymous, by design) and USD (not very anonymous)

the vast majority of USD are kept in banking accounts. the majority of these accounts are subject to oversight by the IRS, which employs over 100k ppl. transactions can be traced. shady transactions are flagged. etc. etc. additionally, account holders are insured by the FDIC.

compare that to bitcoin which has absolutely no oversight whatsoever (some consider this to be a good thing, but it has its downsides). the number of sizable bitcoin thefts is worrisomely high given the age of the "currency", with close 0% chance of ever catching the culprit or recouping your funds. and if you catch the culprit, then what? so the anonymous nature of bitcoins PROMOTES bad behavior, in fact encourages it.

again getting back to the main point, the idea that amazon or ebay or any other legitimate retailer is going to start dealing in bitcoins is incredibly stupid.

Looking to buy BTC, have Skrill (MB).

Have lots of references, PM me offers.

Because they are paying Visa almost 3%?

Because it is difficult to take foreign currency?

If there are customers willing to pay for something and it is profitable for the business, they will accept payments. Businesses are rarely ideologically driven, and if it helps their bottom line, they'll accept it.

You stating it as fact with zero arguments to back it is not convincing. Places like Amazon, who have substantial fees in payment processing (so much so, they set up their own credit cards), will benefit greatly (if they had customers actually paying in Bitcoins).

ok so mining keeps the network secure via processing power right? what happens in 2140 or whatever date mining is no longer possible and people have no incentive to mine coins?

Bitcoin is not truly anonymous. It is susceptible to network mapping. It is hard to prove who owns/spent what but it sometimes isn't so hard to come up with a list of a few likely suspects to investigate further.

Bitcoin transactions can have a fee or reward attached. It is thought that those rewards will pay miners after mining is no longer inherently profitable.

wouldn't these fees be ridic high?

I always compare it with gold. You can still mine gold, but has very little reward compared to what it used to. It will be the same gosh darn thing.

for everyone looking to buy coins. please be open to checking out/using localbitcoins.com.

and if you're in the wash DC/northVA area, feel free to PM me.

obv hard to put a price right now. my investment fund is using a value of $60 on our books... lol... this morning we bought some puts at $125 that got retracted hrs later by the mpex bot. arghhh. looking forward to 10pm tonight!

off the top of my head i would likely sell at the damped state of the large oscillation ending yesterday afternoon. so around $150-170.