I have to wonder why so many here reckon that bitcoins will never work? Looks to me as if they're already working
If I had to hazard a guess, I think it's the "not being physical" part. Some equate it with government fiat, but it's not a valid comparison. Also, not understanding how it works.
^^ I reckon you hit it in one Hawkeye - unless you do a fair bit of reading on what it is and how it works and how to participate, it's easy to draw conclusions based on bad assumptions. Whilst I know there's a fair bit of material out there already, it needs to become more widely known - that, IMO, is Bitcoins next big challenge... there's a good core nucleus of businesses ready and accepting Bitcoins, it's now about "spreading the word".
Would you consider them a store of wealth though given their volatility? I looked into accepting them as a payment method, but they added an unnecessary exchange risk for precious metals dealing. Could look into it for Silver Stackers memberships though.
Personally, for me, not at the moment. I see now as an opportunity to take some slush money, obtain some, and hold on the basis that a truly limited currency - *IF* it gains acceptance and popularity, should rise in value. Considering there is an absolute limit of 21,000,000 bitcoins, and knowing some have already been lost beyond recovery, means that if they succeed, I'd expect to see considerably higher prices for one that ~ AUD$20.00 It's not something to bet the farm on though, it *IS* a gamble based on the future success of the currency, so I'm not prepared to put big money down, just a bit here and there that I can fully afford to lose.
No, not at this point in time. Still very speculative what the true value of them is and the market is too small. Too much volatility as you say. Not that different from silver though in that respect. I think it has potential to fill that role eventually though.
