Re: A finite calculable resource [like] gold/precious metals -- NOT
I am talking as an investment mechanism or currency not as a usable item, i.e. the concept of trading in gold. The whole purpose of trading in gold was due to its measurable quality and purity vs its rarity (yes various other metals can also be traded so the same could equally apply to platinum, silver, iridium etc) which further morphed into promises and currency. It could also be said that fiat currencies could only be used as toilet paper as a physical entity. The only trust you have in say the euro is that its principal countries will keep it stable. If the PIIGS have another wobble in sync then it will have a bit of a fall. Balance this against a crack in a known measurable algorithm. the strength of a (fiat) currency is down to its reliabilty and faith.
Trading in property portfolio aggregates might have physical entities attached to them but you dont expect to actually store the properties as an investor (although they do exist and are managed). Buying shares in a company is but a piece of paper tied to a company, in small amounts you get very little except the speculation that they will be worth more.
Sterling inflation is decided by whim of the bank of england. At least bitcoins inflation is known beforehand.
Yes of course someone could produce a "coinbits" based on the same variable. The greeks could also decided to go back to drachma too. Auric might sneak a dirty bomb into a gold reserve (I did like that film). As a currency bitcoins are not as far fetched as some other currencies in the world suffering from hyperinflation. Bitcoins do have a planned inflation.
The original piece talked about a bubble, bitcoins are not a bubble by a long stretch. Sure there is a surge but im sure it will settle at a "value" eventually. Ironically in order to be taken seriously as a currency it will HAVE to settle in order for people to price their goods against it.