Bitcoin Could 'Destroy The Dollar'

"There will be alternatives to the dollar, and this might be one of them," said former U.S. congressman Ron Paul. If people start using bitcoins en masse, "it'll go down in history as the destroyer of the dollar," Paul added."

Digital payments makes the buying of items internationally a much more smoother process, mainly due to the non-existance of exchange rates, bank regulations or fees. It also allows individuals to make payments in areas without access to banks.

CNN Money reported recently that "It's unlikely that Bitcoin would replace the dollar or other government-controlled currencies. But it could serve as a kind of universal alternative currency that is accepted everywhere around the globe. Concerned about the dollar's inflation? Just move your cash to bitcoins and use them to pay your bills instead. Tired of hefty credit card fees? Bitcoin allows transactions that bypass banks."

So, if people perceive that inflation will affect the dollar, then, it might just turn out that those individuals will turn to bitcoins since it is not affected by increasing inflation?