As Paul Krugman has pointed, demand for the bitcoin comes almost entirely from speculators rather than commercial users, which does not bode well for the stability of any bitcoin based system.
Krugman? Really?
While I'm not on the bandwagon that bitcoin will "destroy the dollar" or anything similar (the Fed seems to be doing a fine job on their own there,) when it comes to economics, you're usually better off taking the
opposite of Krugman's statements and using it as a basis for action instead of his actual Keynesian-centered arguments.