Recently, the co-founder and CEO of BitInstant, Charlie Shrem announced on their IRC channel that they have plans to release Credit Cards and Debit Cards based on the Bitcoin economy.

Users of the Bitcoinica platform are suing Bitcoinica for $460,457.70 over lost Bitcoins. This includes the price of lost Bitcoins and other damages.

Bitcoin exchange Bitcoinica gets hacked, boitcoins worth $90,000 gets stolen.

Decentralized ideas are drool-worthy. However, not all of them are able to add business value to the world. I really wish one of these projects give their better counterparts a run for their money.

Bitcoin is becoming the talk of the town. It offers anonymity and a new way of transaction but can it replace hard cash. I have some reservations with Bitcoin’s current model.

A majority of the bank accounts being used in this drug abuse are based outside of the US. The decentralized nature of Bitcoin combined with offshore bank accounts leaves very little in the hand of federal authorities to act upon.

The FSF has embraced Bitcoin for donations and this will help Bitcoin achieve more value in a world of government regulated currencies. The bitcoin economy is worth 22 million USD and this is pretty small as compared to the well established currency system we have.