Quote from: naphto on July 02, 2013, 10:08:38 AM

Quote from: Mikex on June 29, 2013, 11:05:03 PM

The problem with bitcoin currently is the fact that it has very limited use. Almost anything you can buy with bitcoin can be paid with fiat currency (it's cheaper too), and the only real use for bitcoin is purchasing illegal goods and services. The bitcoin economy needs more goods and service providers to make sense for people to convert their fiat to bitcoin. Also, a major use for bitcoin is to invest it to make more bitcoin, but without things to purchase it will lead to falling valuation. I fear the price will continue to fall until there is a crisis similar to Cyprus or some other event which creates public awareness.

As you pointed out yourself, it is more expensive to buy anything with bitcoins that just buying it with euros.
Bitcoin can provide anonymity, but it will always be more expensive to pay something with bitcoins. Indeed, you have to pay fees to exchanges (banks, mt.gox, bitinstant or whoever....).

From my limited use of Bitcoin thus far, I would say the leading advantage it has is the ease with which value can be transmitted anywhere in the world without a central authority. The few times I've paid for something it's been incredibly convenient. I don't have a lot of opportunities to do this, and also, the incentive to convert my cash to BTC is not very good since I lose a little on the transaction, as naphto pointed out. But if I have to get value overseas or to the next town Bitcoin is potentially the best option--like cash, but I don't need to meet anyone face to face. So in this case, it is far easier to buy something with BTC instead of USD or EUR.

So, I agree with the posts I quote above--as the use of BTC grows so will the demand and so will the price. If use diminishes so too will the price. I would frankly use Bitcoin for the pure joy of knowing that I pay no fees to VISA or any of the financial/banking industry. Rock-solid philosophical foundation: open-source, peer-to-peer + real-world utility = potential to thrive. All in my humble opinion; I wouldn't trust me to predict the future!

Be that as it may, if Bitcoin doesn't hit $1000 in the next decade, I would assume it'll be because a much better alternative will emerge or civilization will collapse; the latter probably being more possible. It's all a gamble!