Bitcoin

I'm currently watching Bitcoin from afar, but I do see the rise of digital currencies, independent of government as a thing of the future. In fact, Bernard Lietauer talked about community currencies existing alongside gold in his book many years ago and that's what got me interested in this whole thing in the first place. I guess Bitcoin does fulfill many of the criteria defining true money, such as limited quantity and infinite divisibility but it is lacking one thing....(call me a traditionalist here)...asset backing. Long term, my money (now there's a paradox..!) is on the rise of one or more online digital currencies backed by gold and silver. Bitgold and BitSilver, anyone?

Sadly, governments and whoever else benefits from controlling the national currencies will do anything they can to maintain the status quo. So until it becomes mainstream expect many more stories about people using Bitcoin to buy guns or drugs and evade their "social responsibility" via taxes. Conveniently neglecting to mention that one of the most common ways to buy guns or drugs is a suitcase of dollar bills!