What, in your opinion, are the main challenges facing Bitcoin going forward?
I'm not at all worried about things like popularity among merchants, public perception, exchange rate volatility, early adopter advantage dissent, incompleteness of the software, difficulty in properly securing bitcoins against loss and theft, time to confirm transactions, and many other issues which are brought up from time to time. These will all be solved with time, and for most the solution is already known and waiting to be implemented. -- Bitcoin's legal status is more worrying. Bitcoin-hostile legislation could be a major setback for the initiatives that are necessary for Bitcoin to achieve its full potential. -- Also, Bitcoin's core technical assumption is that the majority of the network's computing power is honest, an assumption I'm not sure will remain valid forever as things stand now. Some way must be found to either maintain its validity or to make Bitcoin work without it. There are proposals and I believe this will be solved, but nobody knows yet what is the solution.