Yes you bring up an important point.
A currency that is not used day to day, has no mindshare which results in low liquidity, which tarnishes it's attractiveness as a store of value. Yet gold has tremendous value despite it's lack of use as a medium of exchange. This has to do with it's scarcity and immunity to control from any actor. Bitcoin tries to emulate the immunity to control property by being decentralised.

It is important to remember that Bitcoin the currency can function off the blockchain in numerous ways. Just as every USD transaction does not occur on the Fed's ledger, all bitcoin txns do not need to be on the blockchain. It is extremely wasteful to do so in a decentralised system where every node has to download/store & verify every txn.
This is already true with many web wallets(Coinbase), exchanges, changetip, etc...
Yet all these services promote the use of Bitcoin the currency and make it useful.

Even at 7 tps, bitcoin already has more actual txns than gold has today.
Im not saying that the anti-20MBers are against any increase in blocksize, i think we all agree it will need to be raised. We are merely concerned with more efficient use of the blockchain where it is used more for settlement while other trustless offchain solutions are developed and offload frequent and small txns off the blockchain.

Raising the blocksize too fast and too soon will disincentivise the creation of these trustless offchain solutions and risk centralising bitcoin txn validation. At a certain point where only a small number of entities can validate txns, bitcoin becomes centralised, regulated, controlled. And without decentralisation, there is no point to bitcoin, we might as well use a standard database and trust someone.

I've been following this thread for some time and think its wonderful work.

However, in my opinion atleast, the $1 million maximum price is too conservative.
Based on the assumption of Bitcoin supplanting all government currencies alone, which on last check M2 was ~$60 trillion would imply a BTC price of about $3 million each.

Now, where it really gets interesting is if you start to factor in that monetary inflation has been pretty out of whack since the late 90s (or arguably since 1971 after the world went off the gold standard), fuelling the Dot Com/Housing bubbles and more importantly, altering people's saving/investment behaviour. Almost any productive individual today (below 50) has lived their entire lives watching prices of almost everything around them go up consistently, whether it be groceries, houses, stock market, PMs. Even though the majority may not understand the nature of inflation or what causes it, they do understand that saving money in the bank is inferior to "investing" in other asset classes. "Investing" because most of them do not actually invest based on fundamentals but buy the said assets simply because they have shown to reliably appreciate year after year in nominal terms. Many of these "investors" think they are making good investments when they watch their nominal portfolios rise when infact all they have discovered is an asset to hedge against inflation.

Before 2008, the majority of people who were risk adverse may have been content with keeping money in the bank and losing 3-5% in inflation year after year in return for less risk. However after the Lehman collapse and the onslaught of QE/money printing around the world, monetary inflation rates have exploded and asset classes like equities, bonds(it would appear only CBs are buying this) and real estate have kept up with the money printing. It could be argued that since 2008, fiat has been reduced to merely a transactional and immediate liquidity needs type of asset for more people than ever before. Real Estate(see China ghost cities), equities and PMs have now taken over the additional role of long term store of value and are therefore vulnerable.

Vulnerable to Bitcoin, which with its dual properties of being an excellent transactional currency and store of value.
Consider the following:

Global M2  ~$60 trillion
Offshore wealth   ~$30 trillion
Speculative Real Estate  ~$30 trillion??
PMs ~$8 trillion

There are valid arguments to be made that Bitcoin could draw capital from all of them to a significant degree. If we assume that Bitcoin replaces all fiat and subsumes 50% of the other assets, we are looking at a maximum valuation of $4 million to $5 million in today's dollars.

You must be new around here...

Deposits to the exchange require 3 confirmations because the amounts are not within our control.

Transactions usually propagate and show up in 2-5 seconds, that is all the time needed. Its not really necessary to wait for confirmations for low value transactions, more so if the transaction happens in a physical setting where the payer is seen by multiple people as well as CCTVs.

There is also some work being done for the QT Client to detect double spend attempts and warn the merchant immediately, the window for a double spend attempt is a few seconds at best, so the merchant can wait for 5-10 seconds to see if there was any double spend attempt and proceed without worrying about confirmation. https://github.com/bitcoin/bitcoin/pull/3354

Are you referring to withdrawal or Deposit?
Both should be automatic.

Our backend is perfectly fine and not affected by the transaction malleability issue.

The problem is that our bitcoin client is reporting wrong balances and sometimes generating transactions from invalid outputs which will never be confirmed. According to gavin, should be soon. See https://twitter.com/gavinandresen/status/434148075276206080

I generally try to avoid talking about what we go through behind the scenes, but since you have asked and this forum is generally composed of more knowledgeable people, ill spill some.

Generally, businesswise things are starting to pick up, although the Bitcoin userbase per capita in Singapore is one the lowest globally amongst developed English speaking countries (see http://www.anonymousbitcoinbook.com/2013/09/16/where-is-bitcoin-most-popular/). Add the small population and we are not profitable yet, but it is close to the point of being sustainable.

Banks - It is starting to become common amongst the Bitcoin startup scene to hear DBS denying any Bitcoin related companies an account. I guess they are the first amongst the  local banks to see Bitcoin as a threat, although it is naive of them to think that denying bank accounts will hamper bitcoin adoption.
Bank accounts wise, it is a royal pain to obtain and use corporate bank accounts. The paperwork and time to get setup is plain ridiculous(It took close to 3 weeks to get our current account setup). Plus having additional bank accounts further complicates accounting. However if there is sufficient demand for a particular bank, we will consider it.

Fraud - Surprisingly there has been 0 issues of fraud so far. There are plenty of reports online of exchanges being defrauded by customers reversing deposits after buying & withdrawing bitcoins, sometimes causing the exchanges to go bust. (http://bitcoinmoney.com/post/8350754054/bank-transfer-reversals)
This is one of the things that the local banking system has done right, it is extremely difficult to reverse a bank transfer.

Regulators/Regulations - Lets just say that the cost and time spent on dealing with this is more than it took to develop the exchange. It has been a first hand experience for me on how Governments can sabotage their own country's growth by discouraging business startups with unnecessary regulations.

On a side note, i will be interviewed on 93.8 tomorrow(Thursday) 5:15pm.

Instead of calling contributors to your thread fools, why don't you go study history and quote 1 example of a power being successful in stopping the adoption of a technology they did not like?

The question is not whether governments will allow a $X bitcoin economy, the question is whether Bitcoin will allow oversized governments to exist and retain the kind of power they currently do.

Will send out in next few hours, dont worry.

We are required by regulations to retain the files.

Same when you open any account at a bank/brokerage.

What do you mean by how is that managed?

Yes, ill be there.

Ill add it to my TODO list.
I have a fulltime job as well, so between that and the running of the exchange, i get very little time to work on that list.

I read somewhere the Google has released a fix for disappearing keys after the update.

You will have to email me to disable 2FA.

Patience.
It's in the works.

Murphy's Law at work
Never had much problems appear until im in reservist.

Having some network issues, hopefully its sorted now.

Server crashed around 7am today, brought it up by 915am.
Sorry for any inconvenience.

Ya, i provide the platform/hosting while they handle legal/operational issues.