I've been following some of the silly discussions in this thread and I'd like to weigh in on some things.

First of all, as far as actual usage, all alternative cryptocurrencies, including Ripple, are, as of right now, absolutely useless compared to Bitcoin. Once we understand that, we can continue the analysis on a fair basis.

Claiming that the altcoins have a significant diluting effect on Bitcoin, is a statement with no actual facts backing it. Thus far all of the other cryptocurrencies have managed to get a very small market cap compared to Bitcoin. Here I don't even address the possibility that most likely altcoins will bring in more people to the cryptocurrency scene, which will actually increase the whole cryptomoney market cap.

Bitcoin market cap = ~1.1 billion USD
Litecoin market cap = ~50 million USD
Ripple market cap = ~17 million USD (1.2 billion XRP distributed so far based on founder statement, 7000 equals 1 bitcoin, 1 bitcoin is $100)
Other altcoins = ~50 million total?

One can disagree with the way I calculate the XRP market cap, but I can assure you that's the only sane way of doing it.

So, now that we know that the altcoins are basically useless at this time, and their total market cap is very small compared to Bitcoin, we can clearly see that they have no significant "diluting" effect on Bitcoin. It's almost the same as saying that Bitcoin is diluting the Euro. Which is obviously ridiculous. They do dilute Bitcoin more than Bitcoin dilutes the Euro, but anyway. You get the point.

What are altcoins good for? They are good for experimenting with stuff that Bitcoin simply can't. Potentially exciting cryptocurrency innovations can come from there. They can also provide some additional mixing capabilities to the cryptomarket, thus allowing more privacy.

One can argue that some innovations already exist. Faster block time (in my opinion an insignificant issue), different algorithm for proof of work (don't agree on scrypt superiority at all, but I do see it as a good backup), different model entirely (proof of stake included) etc.

Ripple is the most innovative of them all, it's very different. Then again Ripple has significant issues as well. It's way more centralized and it's also way more closed. At the moment at least. I'm at this time very skeptical of Ripple, but the core idea behind it is more innovative than the other altcoins.

Finally, I wouldn't really worry about altcoins. They can dilute Bitcoin a bit, and they are mostly useless, but they can also bring in new people and create more diversity for the cryptocurrency economy. That can't be bad. The market will make sure the useless ones die eventually. Remember that Bitcoin has a huge lead in brand name, publicity and network effect. All the others are way, way behind, and regardless of the innovations they bring, they will have a tough time catching up.

Even though in some ways the "Bitcoin is gold, Litecoin is silver" analogy is bad, in some ways it holds true. Litecoin will most likely remain a significantly cheaper cryptocurrency. Not relative to the monetary base, but in actual market cap.

I'm surprised if Litecoin ever manages to sustain a market cap that is over 10% of Bitcoin market cap. Right now it's at 4%, which I think is actually a bit high. Litecoin has perhaps 1% of the usage Bitcoin has, so it's a bit overvalued. It's very speculative though, so who knows.

with only 34 postings and sign up in may of 2013 how much of a claims do you have? now with members asking a few more questions you tend to throw up in saying you only would sell to private investors? not for the general public? are you scare or try to hide  something from us? ?

No, I expect that would look more like this

Are you UK based? If so register as a 'sole trader', you can claim back electricity costs, additional supporting hardware, i.e. computer, office kit/furniture and if at home a % of your mortgage/rent back as it's being used for business related activity. Check with an accountant.

You gave them a "foundation" to target and attempt to gain control over.  Don't act surprised now that they actually do so.

Agreed.

While Gox doesn't do USD withdrawals, there is a good opportunity to transfer your BTC from Gox to BTC-E and buy LTC.

KnC want you to register as a business, they want this to be professional endeavour, where upon you can claim back VAT, they certainly have no interest in aiding you to commit tax evasion, which is illegal. They said this at the openday.

And not just his housekeeper, go look up a picture of her.
Unbelievable.

With all the respect to your technical skills I really doubt your political ones.
This from a non US European Balkan guy with centuries of Byzantine politics f@ckin up the continent.
You people there are so naive...sorry for my tone, I really like most of you but it has begun and you still negotiate!

He got caught making a baby with his house keeper. No joke.

Let's try to be mature adults and keep some perspective.

Recent FinCEN guidances, DHS/etc. seizures, IRS/GAO discussions have all been in line with existing US law.  See my State of the Coin 2011 presentation and earlier forum discussions.  It has always been known that US individuals and companies must... do the obvious and follow US law.  For US bitcoin exchanges, for example, that likely means federal + 48 state licensing.  Enforcement actions like Liberty Reserve or Mutum Sigilium seemed to be clearly outside existing, known regulations.  You gotta expect law enforcement to... enforce the laws.

This California letter is so zany because it does not fit existing law or facts In My Opinion As A Non-Lawyer.

Each regulatory action needs careful consideration within the context of its country.  "ZOMG GOVERNMENT DEAD IRAQI CHILDREN" is about as far from thoughtful consideration as one can get.

Bitcoin is big, and we are getting a lot of regulator scrutiny right now, worldwide.