Bitcoin grabbing headlines

Seeking Alpha has published my contribution rebutting Paul Krugman's recent comments on Bitcoin. While there is no prediction what the future holds for Bitcoin prices (and no investment advice), the compelling message here is that Bitcoin does have technical value as a distributed messaging system for electronic payment. This may be compared to the value of other intangible services like a mobile phone contract that provides communications service. There are still risks: a better solution (faster, with backwards compatibility) could be developed by a powerful company like Google and Bitcoins would become redundant. Or somebody could crack the algorithm. However, crypto-currency, as a concept, deserves a much deeper analysis into how it could be useful to society.