I have to disagree. Its not great as treating it as a commodity (with capital gains taxes for example) will mean that it wont become a dominant medium of exchange.
Now for transfers it is not cheap if you take into account the spread! So where exactly is the value??? I dont see it.
It may not be dominant but it will still be a medium. I think BTC won't replace fiat completely but it will continue to exist.
Let's say you are a freelancer, a constructor, writer, artist - btc will allow you to get paid for your services without registering a business. Your private details won't be sold by a bank to some advert agency, they won't monitor your income, won't track your investments like they already do. Currently the government knows where you work, buy your food, how much you earn, your credit rates. With btc you are the captain of your own ship. I know people who took credit in foreign currency and it suddenly went up, so now they are completely screwed as the interest rates take 60% of their income. There are still people in this world who want to be independent. I would love to be able to just trade with people, like in the old days - you had a silver or gold coin and you could exchange it for some goods or services without big brother watching from above.
Btw. taxes are getting ridiculous these days. In my country you have to pay tax for giving money or property to your child. If you don't want to feed those fat pigs your whole life you should support btc.