The article is wrong because it merely explains the problems an economy would face if bitcoin replaced fiat.

Bitcoin is not a replacement for fiat, it's a niche alternative.  

For example, loans are basically impossible with a deflationary currency like bitcoin. In an economy where bitcoin were the only currency, loans would have to be done via some other method, or bitcoins would have to be redesigned to be either non-deflationary or with only minor deflation.

As for deflationary depression spirals, I believe these were often caused by the Fed mismanaging the money supply. Now it's true there were issues in the 1800s before the Fed, but I believe other/newer mechanisms could be invoked during a recession/depression to stimulate the economy rather than expanding the money supply.

It would be bad PR for the bitcoin community to fork the chain and block the fbi coins from being used.

no.

the above poster is correct, and the reason why Bitcoin isn't a good alternative to western union yet.

Say, a Mexican migrant get's paid his 1000 wage in the United States and wants to send a remittance home to his family in Mexico. He would lose at least 2.5% converting to bitcoin, and then his family would lose another 2.5% converting it back into peso.

The only way it would cost zero is if he got paid in bitcoin and his family were able to spend the bitcoin in mexico instead of reverting back into Peso. That ain't gonna happen never, cause the US and Mexico would never tolerate their currencies being replaced as the default currency for the country. 

we should all support a bitcoin style auction site to compete with ebay.

Ebay, like paypal, takes too much in fees anyhow.

I would think the day Amazon starts accepting bitcoin is the day the price of bitcoin jumps through the freaking roof.

gold and silver are still global currencies right?

Australia started off as a prison colony.

Today it is a beautiful country.

But it was founded by prisoners.

If one day crypto currency rules the Earth, we'll look back in same fashion maybe. 

because bitcoin currently sucks as a currency (unstable prices, difficult to get, exchange rate fees, lack of vendors)

the only reason to use bitcoin is:

a) a speculative investment (betting that the value of bitcoin will increase)
b) buy drugs.

One might by tempted to list money laundering, but I don't think bitcoin is good for that at all.
The difficulty in obtaining bitcoins makes using it to launder unpractical.

Which means, most people are interested in bitcoin because they think it will increase in value, which in turn means these people think bitcoin will be useful as currency one day in the future, even if it is not now.

"Think of it this way. When bitcoin first launched it had NO value at all, so it wasn't profitable to mine then and costed far more in electricity, but look where we are today."

That is a very good point.

If dispensers can't use banks and only accept cash, won't this effect the ability of the state to effectively tax them?

It seems like you'd want it all via credit card, so you can tax every last cent.

wouldn't the use of bitcoin have a negative effective on the value of fiat currencies?

It's easy to find Marijuana with bitcoin.

I think the alt prices will be strongly intertwined for a long time to come.

you could look for bitcoin meetup groups at meetup.com

maybe this person is getting a divorce.

nope.

In it's entire history I'm not aware of the dollar ever collapsing in value. 

Unlike 3rd world countries, the US has a very good track record in keeping the value of it's currency.

Yes, the dollar has a reasonable rate of inflation (unlike 3rd world countries) but that is not the same as a collapse in the currency.


___________________________________
Get 420 with bitcoins at zeltasgarden.com

The irreversible nature of bitcoin is great for people in third world countries like Nigeria who can't normally order via credit card online because of all the credit card fraud going on.

The lack of a discount fee should also allow merchants to set lower prices for people who pay in bitcoin.

___________________________________
Get 420 with bitcoins at zeltasgarden.com

superior technology can only be suppressed for so long.

If Apple refuses to allow bitcoin for example, then all the bitcoin people will choose android.

No transaction fees allows online payments for industries that are low margin or can't support a 3% discount fee.

Industries that could only accept cash, or bank transfer before, or industries that are prone to fraud, like buying expensive computers online.

The only way to stop it would be for government to come out with their own version of the bitcoin.
___________________________________
Get 420 with bitcoins at zeltasgarden.com