I like the idea of bitcoin, but I have to agree that it feels crazily bubbly. Also, no sensible government would let a uncontrolled currency loose on the world.
The Bitcoin bubble, at $1 billion, is tiny compared to those that burst in 2000 and 2008. Nevertheless, because Bitcoins are the most demonstrably valueless financial asset ever created, they represent the sharpest ever refutation of the efficient-markets hypothesis.
via Commentary: The Bitcoin Bubble and a Bad Hypothesis | The National Interest.
One contrary thought: if there is value in currency dealings being near anonymous and untraceable, then no other currency has that baked into it. Could that be the source of value that Bitcoin needs to avoid the argument above?