Comment: The exchanges are "honeypots".

This is the point I was making. If the bitcoin system becomes large enough to threaten the Federal Reserve System, which it actually simulates and competes with inasmuch as it provides security, anonymity and convenience whereas the FRS provides only security and convenience, then the regulators will close it down.

I was involved in the North American financial markets for 25 years and therefore am somewhat familiar with the predatory nature of the government regulatory system. They exist to protect the established plutocrats, not the public, and they will do whatever is necessary to protect their interests if they are really threatened.

Of course everyone is free to make their own decision in this regard but to suggest that a person may be somehow disloyal to the idea of liberty by refusing to use bitcoins is something of an hyperbole I think. There are good reasons to avoid them for the time being although the early adopters will of course join up. Provided the number involved remains small there should be no danger. Just because the regulators appear to be asleep and inactive do not underestimate their vigilance in protecting their turf and their perseverance in obliterating the competition when they get their teeth into it.