1. Bitstamp is a YC company and many investors are looking to invest in the next Bank of America, unconcerned with short term liquidity. 2. Mining is currently

1. Bitstamp is a YC company and many investors are looking to invest in the next Bank of America, unconcerned with short term liquidity. 2. Mining is currently barely profitable, but some people get economic value from heat and the mining futures market is going to stabalize the mining to bitcoin price relationship. 3. If you ever believe that a decentralized currency will be how we transact in the future (as I do) this will always be the case. The benefits of crypto currencies are vast, and the institutional support seems to be behind bitcoin at the moment, but this could change if a strong contender arises. 4. You misunderstood the author. He is saying that it will be easier to be anon with bitcoin in 2014 (think Tor backed bitcoin clients). 5. Global forces are complex. Corporations are some of the actors, politicians others, and the military and intelligence groups others. It is fair to talk of America's interests, as papers like the economist do. 6. Bitcoin is hard to use right now, it only competes well on irreversibility and on annonimity. People use it to buy drugs in western countries, but as it gets easier this may change. 8. Making something easier to use does not necessarily change its security. It is both easier and more secure to make a voice call over the internet than next to a land line. 9. Most people (including you it seems) don't have an intuitive understanding of inelastic supply. The price changes look more rational when you do.