The problem is that all the advantages of Bitcoin is now lost, and you have transferred control of Bitcoin to the Bitcoin bank.
For example: you can gather Flexcoins, which allow instantaneous transfers and so forth. But by doing so, you no longer have Bitcoins. You only have Flexcoins, and if the Flexcoin bank goes under... you lose all of your bitcoins.
IE: Using Flexcoins (or any other form of Bitcoin bank) completely defeats the purpose of Bitcoin.
That isn't a loss of the advantages of bitcoin, because you got to choose which organization to trust, if any. With government currencies, you don't get to choose.
Bitcoin actually provides a new choice: government or no-government. People that want government/cb currency are free to choose it. People that want no-government money can choose Bitcoin.
https://upload.wikimedia.org/wikipedia/commons/7/70/US-%245-...
Which is the entire point of this thread of discussion. People are not liking the restrictions on Bitcoin (ie: wait X number of hashes before the transaction is complete), and are recreating "alternative currencies" for Bitcoin. Which to me... seems against the point of the medium.
This exists now with charge cards. You load up a card, and you bear risk that the company could go under.
"IE: Using Flexcoins (or any other form of Bitcoin bank) completely defeats the purpose of Bitcoin."
I'm not talking about an alternative coin. I'm talking about something akin to what happens now with CHIPS and FedWire, where the dollars are shuffled at a later date but the transactions are approved before it happens.