I am new to bitcoin and need some advice.

[Syzygys]

OK, Perhaps you will answer my question: From buyer's POV in a typical store, why is bitcoin better than check or even cash?

It is not better, it is worse. Bitcoiners don't get that somebody always has to pay the piper. If the vendor saves 3% on not using CCs, the bitcoiner loses close to that much by converting to Bitcoin. The free lunch only exists for Dorian Nakamoto.

Actually, since there is no chargeback and protection, paying with bitcoin is specially bad for the buyers....That's why it is good for the vendors, they don't have to take the product back....

 

[Syzygys]

It is a classic bubble, and it should have popped.

Losing 66% of its value (from 1200 to 400) is not popped? I consider that burst.... The reason why it is still relative strong at $700 is because the demand from investors money for investing opportunities is too high. Simply there is just not that many good (and quick) money making ideas. But in the long run more virtual currencies will come on and reality will set in and volatility will die down and price will slowly come down....

 

[Billy T]

One more blow to bit coin:

The IRS, faced with a choice of treating Bitcoins like foreign currency or property, chose property. Exchanging Bitcoins for goods, services or dollars will generate taxable income or losses, depending on what the Bitcoin investor paid.

The IRS ruling could reduce the volume of transactions conducted with the virtual currency, said Pamir Gelenbe, a venture partner at Hummingbird Ventures.

Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop. “It’s challenging if you have to think about capital gains before you buy a cup of coffee,” Gelenbe said.