First Bitcoin Capital Corp (BITCF)

[janice shell]

At the beginning coins could be mined relatively easily (aka packing "freebies"), but then mining difficulty becomes exponential requiring for more dedicated and expensive watt-wasting hardware to get less for more, akin to needing more suckers to get less yield until mining becomes unprofitable and the currency supply stalls without even ensuring it's enough for an actual economy.

I think another problem is that part of the appeal of bitcoin was that it was initially seen as a kind of "egalitarian" currency, not controlled by elite groups in government or the world of finance. Mining was a game anyone could play, to some extent. But as the costs increase, different kinds of "elite" groups will take over: those who have the computer skills, those who can afford, and know how to use, the expensive hardware.

No fees paid to middlemen? That'll go the way of the dodo as well. We already see that the ATMs are charging for transactions. When it comes to dreaming up fees, people are endlessly inventive, so that won't stop.

The Silk Road mess has made our government wary, and I'm sure other governments feel the same way.

The whole thing may turn out to be another short-lived bubble.