I see no reason why Bitcoin could not become widely accepted. If solving math problems is worth money, then it's actually got more real value than most currencies out there.
Australia, Canada, New Zealand and Sweden all have a zero (0) percent reserve requirement, which effectively enables their private banks to issue unlimited amounts of currency at any time. They simply create an entry in a database and *poof* -- the money magically appears. (The US reserve requirement is about 10%.)
However, in the case of Bitcoin, real work is done in order to create the currency. It actually has some kind of a backing other than "faith". It does not require black magic to create - it requires real work. A "bit" of difference there.
Deflation is a good thing. It increases the value of savings without resorting to usury - keep in mind that usury has been punishable by death in many places and at many times. (Usually by people who understood what it actually does.) Inflation destroys people's savings. The value of the US dollar is about 4% of what it was 100 years ago, thanks to inflation.
The only thing Bitcoin needs is wider adoption my more merchants. If everywhere you went, you could use Bitcoins... would you use them? I sure as heck would.
Just think about it for a moment... Now when you buy your pron subscription, nobody ever sees "XXX Juicy Fleshfest" on a credit card bill. Eh? See just how useful Bitcoin really is?
It's anonymous like cash, but convenient as it is digital.
If money becomes digital and linked to your ID, then someone can simply turn you "off" and remove you from the economy. Say goodbye to buying things like, oh, maybe, bread? Milk? Food? Gas? Pron?
Bitcoin solves that problem.
Incidentally, the problem was outlined quite some time ago
, and well before modern computers:
16 It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads,
17 so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name.
18 This calls for wisdom. Let the person who has insight calculate the number of the beast, for it is the number of a man. That number is 666.
Cue some Iron Maiden at this point!
The neighbour of the Beast!
The one across the street!