I'd like to understand why somebody thinks a Bitcoin will be worth $1000.
I don't buy into the "Bitcoin as currency" at all. To me it is strictly an electronic
commodity, and a highly speculative one at that. Lack of a stable value
makes a currency completely unworkable, in my opinion.
Bitcoin is not a currency or a commodity. It's a protocol, like FTP or E-mail or BitTorrent, which allows you to store and transmit value. It doesn't really care what that value is worth. So, even if you discount the speculative commodity-like nature of it, and only use it to send money back and forth like PayPal (USD/EUR -> BTC -> USD/EUR within a few seconds), which is already way cheaper to do with Bitcoin that with other systems, especially internationally, then its value will still grow just due to the amount of bitcoin stuck in those seconds-long transactions.
The example of using as a replacement for international payment seems to have one "buy" and one "sell"
of a Bitcoin in the middle. My simplistic understanding is that neither of these will be done in seconds
with the need for confirmations. I thought I'd read that it was minutes, and could approach an hour.
Maybe that's still faster than other methods. Isn't there also the usual bid/ask cost at each end of
the whole transaction? In other words, I start with $100, and by the time it goes through the buy/sell
process, it's not even $90 at the other end. Is that completely out of line? I have zero experience with
international transactions beyond the usual currency exchange at both end of an international trip, and there
were plenty of losses along the way. In those days you always wanted to minimize the total number
of exchanges, and well as try and come back to the States with as little non-USD as possible.
The idea of Bitcoin as protocol is an interesting one though it can only carry Bitcoins, and it's not
entirely loss-less as I understand. Isn't there a small "fee" levied somewhere along the line for the
transmit?