I don't know how we got onto Cypriot banks from talking about Bitcoins.

That said, regardless of your political beliefs about monetary theory, Bitcoin is, for the most part, yet another currency with a variety of pragmatic properties that make it undesirable. One last time:

- You need to safely store some crypto keys in order to store currency. Lose the keys and the currency is gone forever. Somebody steals the keys and they can spend your money. No recourse.

- There's nobody offering anything resembling deposit insurance. If you use a third-party to manage your Bitcoinage, you're dealing with their own poor security engineering. If they screw up, you lose. Likewise, since there's no FDIC insurance on this stuff, if there's a run on the 3rd-party Bitcoin bank, then they're forced to sell Bitcoins at market prices, which might well suck and could well put them under.

- Bitcoin is a teeny tiny little market compared to gold or dollars or whatever else. That opens it to manipulation. It also means great value swings, in both directions. (Anybody who thinks that Bitcoins will do nothing but gain in value is deluding themselves.)

- Bitcoin is not anonymous. It's perhaps the most trackable currency ever, so long as the end-points where you exchange other currrencies for Bitcoins are tracked. And, it looks like regulations are coming online to do exactly that.

- Bitcoin provides no buyer protection. You reach a deal to buy goods. You pay the other party. They fail to send you the product. You have zero recourse. There's nobody to complain to. You can't get your money back.

None of this is particularly partisan or disputable. The only place where we might have a dispute is whether the Bitcoin deflationary design is good or bad from a monetary perspective, but all the other concerns are still present.