This article is a nice one for non users. However, its a shallow article that lacks research depth (author holds a Ph.D. in economics, research should be evident)
However, in order to become a viable alternative to existing monies, bitcoins must generate a sufficiently large demand so that their usage becomes generalized.
That's true.
Consequently, bitcoins could become money only at the point when the technology that embodies them becomes commonly used
Author is confused about mining and usage of Bitcoins. You don't need to own digging equipment to own or transact in gold.
A technology-linked medium of exchange does not provide enough flexibility to economic relations and might be viewed as complicating, rather than facilitating, some actions, such as shifting from one technology to another. This is a significant drawback of any virtual currency.
Yes. This is also an opportunity for Bitcoin. One of the reasons we moved from gold coins to paper dollar bills is for convenience. Its going to happen soon for Bitcoin.
In conclusion, virtual monies, of which bitcoins seem to be the most perfected specimen up to date, do not allow acting individuals to manage the uncertainty of the future as well as material monies do. They could serve to intermediate exchanges among those who invest in the technology that creates them, stores them, and transfers them. Nevertheless, they could never achieve that degree of universality and flexibility that material monies carry with them by nature. Thus, on the free market, commodity monies, and presumably gold and silver, still have a great comparative advantage.
Confused and premature conclusions.
