I've been experimenting with Bitcoin since early February after my brother sent me
BTC5 to play with. I'm also interested in Ripple and the idea of p-2-p virtual currencies in general.
One of the claims that is made for Bitcoin is that it is "inflation proof" since the algorithm ensures a predictable supply. At one point I wondered if it might be possible for "bankers" to issue loans based on fractional deposits but have come to the conclusion that it can't be done, since actual Bitcoin would have to be transferred.
So, at this point as I see it, the chief limitations of Bitcoin are that it is not generally accepted as form of payment and it is somewhat difficult and slow to exchange it for sovereign currencies. It looks to me like Ripple may resolve the latter problem and perhaps thereby become more acceptable as a form of payment.
On the other hand, as a store of value (as I recall from my undergraduate
Money and Banking course, one of the two essential attributes of money along with medium of exchange) Bitcoin has performed rather well since mid-February!
David Baril
Almonte ON
Welcome to Bitcointalk David!
While I suppose you could say Bitcoin is still not generally accepted as a form of payment, that is increasingly changing. The number of goods and services that you can produce online is rapidly increasing. As for transactions in real life, there are numerous groups working on ways to make physical transactions much less painless, and some are making pretty good ground.
At the moment we're still early in the distribution of the currency stage. It's exciting as there is still a lot of opportunity in Bitcoin yet it's also still risky.
