Hey, I know you hate Bitcoin and think it's a pyramid scheme and everything, but isn't it good for smart people, and wouldn't its success create fricture among the elites (like you are always advocating)?
I don't like the forced deflation. Deflation encourages hoarding and protects elites.
With Magic: the Gathering (Mt. Gox has me connecting the two) the hoarding behavior is actually good because it keeps unbalanced cards out of play. With BitCoin, it's going to lock a lot of the stuff up with hoarders. That could destroy it, insofar as if no one's using it, the market becomes illiquid, compromising value and possibly causing panic sales. The thing certainly isn't ready for prime time as a currency.
Also, there's a pretty easy (and legal) way one could destroy BitCoin. Right now, there are no reserve requirements, because it's not a real currency. Start a bank. Make sure it's a limited liability corporation, because this is a bit risky (bank runs). Let people deposit BTC and then lend them out. Now you've put a money multiplier on BTC, and without the reserve requirement, that's unbounded. Goodbye, scarcity. Goodbye, $147 BTC.
At that point, it's unclear that BitCoin has any value, until regulations come in regarding reserve requirements.
Could be an interesting project, but hard to see it causing a major shift in BTC values.