Check this Wikipedia page and keep in mind this is just a tiny fraction of the things you can do with Bitcoins
The real question is what can you do with cash? While I suppose you can't roll up a Bitcoin and snort cocaine with it, you can buy the cocaine with it. Just like cash. I think it is actually worse than cash for illegal purposes because of its non-repudiability, and actually less anonymous than cash for the same reason. That's partly why it's galling for it to be linked to illegal activity, tax evasion and money laundering when nothing could be further from the truth.
Some have used it for those purposes, but it is actually not particularly well-suited to them. It is actually better for legal economic activities than many of the fiat alternatives, especially for international trade where it can bypass currency exchanges and act as a universal currency.
If a vendor in Iran wants to sell a rug to someone in France, they can set a BTC price and it can be paid by anyone anywhere. Neither the buyer nor the vendor have to know anything about the exchange rate or even know what currency the other country uses.
I agree with you on this %100 and the possibilities with Bitcoins are endless. Bitcoin to me is just the starting stones on an endless amount of evolution. It's not IF it will evolve it's WHEN and by how much. Personally I am in it for the long run and Bitcoin has opened up the door to me for countless amounts of good things. It has a long future and has been through alot and over time it just gets stronger. At the current time I don't believe you can kill Bitcoin (Unless you have major money to waste and a planned %51 attack). Bitcoin has proven resilient to nearly every crash. What doesn't kill Bitcoin just makes it stronger and I can't wait to see what happens.
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