For Bitcoins to be successful, it has to be able to replace the existing debt!
Whos debt? This reveals a thinking stuck in old system.
Should it replace, US debt? The Zimbabwe debt? whole worlds debt?
All money in the world, including chinese Yen or just the dollar?
Short answer is of course: No.
If the existing debt is not replaced, it must be written-off. This act will set a precedent to the creation of more debt.
There is really allready countries which has dual currency systems which works absolutely perfect.
In fact a dual currency system often works better.
Bernard Lietaer: Money diversity
http://www.youtube.com/watch?v=T9EI2PrDpmw&feature=relatedIt does not have to replace anything to be useful.
A glass can exist and be useful without having to replace all the old glasses.
I can get
BTC10 that was not created out of debt, by selling something for them, doing some work, mining them, trading them
for debt based money.
I can trade a sock for 0.1Btc if I want. Without caring how many dollars a Bitcoin is worth.
When I have those. No need to use debt based money anymore.
(Except to pay taxes.)
Its not hard.
And Bitcoin does not belong to a single country.
Its independent.
In case of dual currency systems both currencies are still taxed, and they are within the control of a single gov't. Given that Bitcoin is a "perfect" way to evade taxes, it's growth is likely to be curbed by unwilling governments. In his opinion it makes it very difficult to co-exist as a major currency.