This is a common refrain seen around /r/bitcoin as well.

If few people use it as a currency now, and the majority of people that buy it simply sit on it hoping it will appreciate, why do people think lots of people will want to use it as a currency in the future?

If cryptocurrencies were to become significantly more user friendly in the future and there was an economic niche revealed where their use made sense for lots of people, wouldn't people be more likely to choose a cryptocurrency that didn't come with a built in rentier class of people who have piled up large amounts of the cryptocoin while praying that a vapor future demand be made manifest?

The twins have placed themselves firmly in the camp of those who believe that Bitcoin will survive only if it has regulatory oversight.

At present bitcoin's two main use cases seem to be buying recreational drugs[0](which I have no problem with) and paying for things related to computer fraud(which I think is a destructive waste of time by misguided minds.) Both of these things are presumably things that regulators would like to regulate out of existence as best they could. So if they are even partially successful in doing that, what is going to drive the demand for bitcoin?(tell me something other than remittances, or if you insist on remittances then please explain why if it is not a suitable option for many now, how it could become one in the future.)

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[0] As a side note on this, bitcoin does seem to be very well suited to the online drug trade, it of course has already proven itself in this area, but from my outside perspective it seems current or potential future problem areas are the on and off ramps, the exchange between fiat and crypto. But imagine if the loop could be closed between the drug buyers and sellers.

So after a drug dealer has accumulated a large amount of crypto, he'll need to convert it to a more widely accepted currency to pay for the cultivation/production of more drugs, food, housing, etc. I guess the current method is to use a mixer then cash out at Bitstamp or btc-e or something, but say that bitcoin becomes regulated to the point that this becomes much more difficult to manage. So to close the loop, using bitcoin or another crypto, the drug dealer with the accumulated crypto sells to a network of crypto dealers, these crypto dealers then sell to a smaller hub in the network and on and on until the drug buyer instead of going over to the neighborhood weed dealer, goes over to the neighborhood crypto dealer, then buys his weed online with the crypto.

There would likely need to be some profit incentive in this, so maybe the drug dealer would sell their cryptocoin to large hubs in the crypto dealing network at a discount in exchange for not dealing with more onerous regulated off-ramps, that discount then gradually being reduced as the crypto radiated out through the network.

Of course with the way drug laws are being re-developed, hopefully all of this becomes moot in the not to distant future.