The recent demonstrations of Bitcoin's volatility, on the one hand, and security issues, on the other, seem to have a lot of people spooked, and rightly so. I

The recent demonstrations of Bitcoin's volatility, on the one hand, and security issues, on the other, seem to have a lot of people spooked, and rightly so. I think one way this could play out is that people might remain wary of using Bitcoin for large transactions or keeping large quantities of Bitcoins around; but small transactions are another matter, and I have no trouble imagining people keeping $20 worth of Bitcoins in their wallets to spend in small bits (pun intended). In short, we may finally have here the solution to the micropayment problem.