Still not convinced
Lots of people "have been in contact with regulators" regarding approval of Bitcoin, but none of them tell us what those regulators say.
European Regulators will tell them they have to register as an electronic money issuer in the same way that Paypal is, have €1m of money in reserve, and in addition, have reserves equal to the amount of money outstanding.
When I've suggested that before, people say that Bitcoin is completely different to Paypal or the various prepaid credit cards out there, and the regulations cannot possibly apply to Bitcoin. Actually, Bitcoin is exactly like how electronic money was originally envisaged. The regulations were extended to allow "server based" systems to operate as well, and server based systems are now the only type that actually exists.
In the US, Paypal is registered in each state as a money transmission agent. Presumably the requirements are a bit different in each one, but I doubt very much that Bitcoin meets those requirements.
Look at MTGox for example. There is $27m going into their exchange every month, but the withdrawal limits of $1000 per user per day means there almost certainly isn't that amount of money coming out of the exchange. Are they registered with the Japanese financial regulator to hold client money? Do they capital adequacy returns that are subject to regular audit? Yes you can point to Madoff and say that these don't always work, but that doesn't mean you solve the problem by getting rid of these regulations altogether like in the days of Charles Ponzi.
The Bitcoin rent-a-crowd will of course be along shortly to tell me how wrong I am, and to vote me down, as they always do, but I still maintain that Bitcoin is a cross between a speculative bubble and a Ponzi scheme. In the future, people will read about this in their history books and wonder how anyone could possibly be stupid enough to be taken in by it. I want to put it very clearly in the public record now that I was not taken in.