"shares are not money, and your admission demonstrates this."
The Forex market is the biggest market traded on earth as far as I know.
Bitcion is another currency.
Like all other currencies it is exchangeable. Hence it can be valued in dollars, yen or whatever Gold even. This is good and a necessity of any currency.
"You still rate the value of bitcoins in dollar terms - how many dollars it would buy you, not in terms of the products and services bitcoins will buy you - house payments, cars, etc."
Bitcion is a fledgling currency it has not and will not be Forced upon the populous by threat of Violence, so granted it my be a while before you can pay your house loan or Tax in Bitcoin.
You can to continue to pay Tribute to those crafty Banksters for the pleasure of the use of their from Thin Air Debt based currency. OR you could save those Bitcoins and who knows how high they may go in another 3 years. Would be silly not to have some.
The fact that its value has skyrocketed has a lot to do with it unique characteristics ones that others do not have. Limit of supply, is not to common in the world of fiat.
"if people just all use bitcoins to hold onto, how would transactions take place?"
Use them as you please, some people save all their money in a Bank loosing value against inflation every day, and letting Banksters profit from fractional multiplication of your deposit to make Great profits at the depositors expense.
"what makes bitcoins worth anything at all is that people are willing to buy them off you at a certain price. when the market vanishes, so does the value."
Best you have a look at this chart,
"If a nation bans their use as mediums of exchange, the value vanishes."
Do you understand P2P they have been trying to ban that for years without success.
"do you honestly believe the US government would allow the USD to be replaced by a currency it can neither regulate nor create?"
They have no control over Bitcoin. They can not even sort out their own USD problems. Their USD problems are the result of all the things that Bitcoins are not.
"Can you see the EU allowing greece to pay back their debt with Bitcoins simply because the tiny proportion of people in the world that use them say they are worth X amount of euros?
It won't happen."
Probably right RBR Can not see Greece paying its Debt in any currency except Blood maybe.
"the Nullabor analogy was simplified. if anyone comes on holiday to Australia they can change their home currency for local currency at the airport. you can't that with bitcoin. people can pay on credit card from their own country that the credit card company will convert. can't do that with bitcoin."
Well as a fledgling independent currency, who would expect it to have all the bells and whistles a entrenched tribute based system has to offer At a price. There are way to do exchanges that will allow one to do all that needs to be done and more. No limit to how many Bitcoins you take overseas with you. No need for the Government to know.
"as nice an idea as it is - an unencumbered currency, shifting to a virtual currency of this type would mean a total shift from the majority of people and goverments in the world and this simply won't happen."
You do not seem to understand Government has NO control over Bitcoin. But you are right; "as nice an idea as it..." It is a Brilliant idea!
"seriously, if next week your employer said they were going to pay you in Bitcoins would you accept?"
Could be done, Bitcions to Paypal. Would accept Gold or silver as well.
Any way if you are not prepared to step out of the box you will be forever forced to live in it.
