I know the same (lack of intrinsic value) can be said of fiat currencies, but an artificial demand for fiat currencies is created by (among other things) taxation and legal-tender laws. Also, even a fiat currency can be an inflation hedge against another fiat currency's higher rate of inflation. But in the case of bitcoins the inflation rate of 35% is almost guaranteed by the technology, there are no supporting mechanisms for taxation, and no legal-tender laws. People will not hold assets in this highly-inflationary currency if they can help it.
Concluding from Ray Dillinger's words that bitcoin has no supporting mechanism to carry out taxation. I think that is absolutely right because bitcoin itself is a decentralized currency, which from the beginning was intended as an anonymous currency. How will taxation work in a decentralized currency? wouldn't that violate the basis of its creation?
Maybe in Ripple's eyes taxation could still be developed like that because the coin was included a centralized coin. Where from the beginning intended to rival fiat currencies.