Video buzz-blather aside, the bitcoin project makes me think that it might be time for me to re-read Neal Stephenson's Cryptonomicon, and that we all still have a painfully great deal to learn about living with both fiat currencies and globally networked markets.

Wikileaks seemed like an excellent idea to me until it got tangled up with personality crap about Mr. Assange. If it's the serious, long-term movement I hoped it was when I first read about it, I hope they'll figure out how to get on with the work without the drama baggage.

First problem I see with them is that they are bound to crash in the near future. Their recent spike in popularity seems to be a perfect condition to start a bubble with to me. I'd definitely wait a bit before getting too involved with these.

No, and No.

Anything not backed by a material good, such as gold, silver, platinum, alpaca wool, etc. is Fiat and there fore subject to inflation, manipulation and fraud.

Bitcoin is no different, it stems to make something out of thin air and declare that it has value, to purchase good and services, those things that represent wealth.

the only difference is that it isn't run by the power brokers. Bitcoin like every other fiat currency gets its value from every other bitcoin in circulation, right now it seems like a good idea because there isnt that much in active circulation, so bit coin is worth alot, but as the production of Bitcoin continues, its value will decline and eventually become worthless. but by then someone will have invented a new digital currency and start all over.

This isnt anything against the makers of bitcoin, they may or maynot be trying to pull a fast one, but what i described is the laws of economy, and much like the laws of physics, there is no free anything, and there must be a preservation of mass of sorts.

In economy, you could call it, the preservation of value and wealth law. As a currency expands, its value must decrease. much like hot gas cooling as it expands.