Comment: I think what most people are

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I think what most people are

I think what most people are not even contemplating about Bitcoin is that they are not guaranteed to be accepted, such as FRNs. The Government(local, State, and Federal) have to accept FRNs, and what's worse for Bitcoiners is, in most States, FRNs are all that are allowed to be accepted to pay taxes, and fines. This dose of reality leaves Bitcoiners with a potential future problem, which is, how does one turn Bitcoins into FRNs? This problem would normally be solved with an exchange; however, when Magic The Gathering Online eXchange aka Mt Gox signed a deal with Silicon Valley Bank, Mt Gox now has to follow all banking laws -which is why they now require a photocopy of the individual's ID to open an account. The US government has also stated that all exchanges must follow certain finance laws. This means that while it may be theoretically impossible for the US government or any Government in particular to control Bitcoin within their borders, those government can ensure that Bitcoin is not the sole currency in use, by making it nearly impossible to exchange Bitcoin for government fiat needed to pay taxes(property taxes, auto insurance, etc).

Also, while government will never be able to stop person to person transaction -barter is still around in certain places- the government can make it nearly certain that all major companies and corporations would not accept Bitcoins. They can do this via tax loopholes or some-other fashion which helps reduce a company or corporation's tax liability to zero. With all kinds of tricks up a government's sleeve, Bitcoin will never become more than a novelty, because the vast majority of people will never utilize it, because the companies which most people frequent will never accept Bitcoin; lest they want to run afoul with the mob (government) which provides for their protection.

As far as using a traditional computers or even several computers to mine bitcoin is concerned, it is unrealistic in this day-and-age. Traditional CPUs are not made to do the type of calculations required to mine bitcoin. This is why the miners in the beginning quickly moved to computers with multiple high-end graphics cards -costing up-to $1200 for each graphics card. Today, these Frankenstein computers are not utilized as much -except for those who never recouped their initial investment and total cost of operation. People moved to FPGA systems and now ASICS systems. However, now that the ASICS systems are out it is becoming harder and harder for people with little money to be able to mine any bitcoin. The system was designed so that the more miners which were mining the harder it becomes to mine a single bitcoin -this way the system controlled how long it would take for the total number of bitcoins to be mined.

Also, most governments have been trying to find a way to get their citizens to embrace a total digital currency for quite some time. The Black and Grey Markets, as well as libertarians and Sovereigns and other types of liberty individuals have been the biggest holdout from this homogenized digital currency. Bitcoin is hell-bent on taking the Black and Grey Market digital along with Anarchists, Agorist, Libertarians, Sovereigns, etc. If Bitcoin were to succeed it wouldn't end FRNs, it would end physical money altogether; and the governments would force everybody to use their government digital currency. People would therefore have no other choice but to use Gold and Silver, until -that is- they are confiscated like gold was back in 1933.

Also, what one must realize it that whatever physical item one buys with bitcoin must be shipped to a physical address. Between this and the fact that every transfer is held within the coin itself means that Bitcoin is not as anonymous as its proponents like to tell everybody.

Bitcoin would be great for buying digital items, but most -if not all- digital items for sale for bitcoins have been copied 'illegally.' If the legality doesn't bother an individual, then one should think that they could also get the item -which is for sale for bitcoin- for free from the same websites the seller got it from; therefore, making the purchase of the digital item pointless.

The only really useful use for bitcoin is the purchase illegal items which are physical in nature, like drugs or guns or even sex or a person; but physical purchases can be tracked and therefore Bitcoin's greatest usefulness is a liability.