People don't seem to realize that bitcoin is not a product. Buying into bitcoin is like buying cash. It has no intrinsic value.

Reverse inflation. The higher the value of 1 bitcoin, the more valuable 0.00000001 BTC (1 satoshi) becomes. Yes, bitcoin is a game of copy and pasting values. For convenience sake, and for the sake of the general population, this makes using bitcoin harder than using cash or a debit card. A BTC address is extremely hard to remember (which may be a good thing in some instances), but for the sake of every day people using it, it may come off as confusing and hard to use. I believe the 21 million BTC cap is too low, as more people using bitcoin will only cause the value of the smallest amount of bitcoin to raise. The market would be at around $46 billion if prices right now were to level off.

As more people use bitcoin, convenience becomes an issue when converting bitcoin to other currencies, and relying on copy+paste become an issue. Writing down even your debit card number is not hard, and it is not a very hard number to memorize. Relying on the technology (copy+paste) may cause serious issues. Physically storing information is much less of an issue because, well, transportation is somewhat difficult and finding paper stored out of sight is quite hard. With the internet, we see more people accessing more information, and more malicious users finding ways to get access to that information. You could counter argue this with "security" ideas and other forms of internet security, but internet users can always be gamed the more we use the internet. Me typing this long reply on my opinion is giving away information - it can only hurt me. You being able to find out where I have $100 in cash stored in real life, and actually taking the time to get it, is much, much harder than finding where my $100 in BTC is stored and gaining access to it. We are living in faster times where accessing data at faster speeds can cause much larger problems.

While I may come off as "Holier than thou", I've tried to state my concern with inflated bitcoin prices before on /r/bitcoin, which quickly got shut down. A straightforward title seems to get the most attention. Thanks for your reply.

/r/btc Thread Parent