The one weakness that I see in bitcoin is that the current model for loans and lending is incompatible with bitcoin.
As I said in
my post on fractions, in a deflationary world, the way to treat shares and money may completely invert. Those with the least bargaining power may be given shares. Those with the most bargaining power may be given money and zero interest loans. This is a very long term scenario where bitcoin has stabilised.
Much more equity and much less debt in a bitcoin dominated future.
As a business man this creates an interesting dilemma. Most small and medium business DEPEND on short term loans and credit. Suppliers accept Net 15 or Net 30 payment terms. Inventory costs are highly variable and often come all at once rather than at a rate related to income.
More businesses will move to shorter payment terms. This happens in any place where the money is valued highly.
I see the future and complete acceptance of bitcoin as an alternative currency, however I don't see how we will ever separate it from daily exchange with a fiat currency.
Thoughts?
In a hyper inflationary endgame, I could see more and more people borrowing in the native currencies to buy bitcoin, which is a typical hyper inflationary scenario. Prices being more and more stable in bitcoin and varying crazily in native currencies. But this is an unlikely scenario, since interest rate rises will put a temporary halt to the same.