I don't know... personally I don't even expect Bitcoin to be a good "medium of value" or "commonly desired medium of exchange" in an economic sense. The main ra

I don't know... personally I don't even expect Bitcoin to be a good "medium of value" or "commonly desired medium of exchange" in an economic sense. The main raison d'etre for bitcoin for me is, should I some day have the desire to do so, to buy drugs and other things deemed illegal, anonymously. (Since I don't buy such things, I don't use bitcoin at the moment.) For this purpose, bitcoins only have to hold their value for a miniscule amount of time, from the time I buy them to the time I've transferred them (and to the time the reciever of the bitcoins has done something with them). It is theoretically even possible to reduce this time to milliseconds. (I'd buy bitcoins in person or via wire transfer, they'd get passed through a tumbler, do the transaction I'm interested in, and my transaction gets matched with other bitcoin<->money transactions somewhere else on the planet. Most individuals would only hold the coins for split-seconds.) Basically, I view it as a kind of digital Hawala [1]. For this purpose, the current value stability is much better than needed. [1] http://en.wikipedia.org/wiki/Hawala http://en.wikipedia.org/wiki/Hawala