Two and a half years ago I wrote Simple critique of Bitcoin, and my first prediction is coming true. I wrote:
Bitcoin MIGHT work if only it was able to be unique. But there is nothing to stop a proliferation of identical networked coinage systems. Even if it were patented, the patent would expire. With no intellectual property protection, we would see an unlimited set of identical citcoin, ditcoin, etceteracoin.
[Added 12/6/13] So this is how fiat currency dies, with thunderous CPUs?
As predicted, Litecoin has arisen. And it can make 4 times as many coins! It is open source, and thus can be reimplemented over and over by anybody who wants to open yet another bubble. But worse, "In fact, Cryptocoincharts shows something in the region of 164 different virtual currency-based cross rates in the market..." which means a minimum of 13 competing currencies.