Twenty years later - nearly to the day - the exact same thing happened again - and the same people were telling me I was "dumb" to get out of the Real Estate market when so many people were "cleaning up". This time around, I listened to my gut instincts, and not the "experts." I made a million dollars, literally.
The currency is not stable. It has gone from 32 cents to 32 dollars, just in 2011 and then back down to two dollars. It soared to nearly $1100 dollars and then back down to $600. Some claim that this extreme volatility is irrelevant - as the bitcoin is just an exchange medium, and not a currency that one holds. Yet the limited number of bitcoins encourages hoarding of the coins. And if it is just an exchange medium, then it really isn't a currency, is it?
Yes, the dollar could also crash, but I am not so sure it will. The economy is growing, inflation is down, and interest rates are low. The rest of the world still cherishes U.S. Dollars and while China may hold a ton of our debt, we are paying them very little in interest for these loans (and despite what tea-baggers say, China cannot "call" this loan. If you own a T-bill, you know how powerless you are as a creditor to the USA).
So, no, I don't buy the arguments that bitcoins are just like dollars and based on perception alone. And no, it is not because I'm too dumb to get it, but because the argument is bullshit. And I'm old enough to detect bullshit when I see it.
It would also have to be controlled or monitored by some government agency or body of governments (like the Euro). It would have to be backed by more than the ability to solve puzzles on your computer. And we'd have to know who is actually running the show, too.