Would you prefer if Google could use other people's innovations without compensating them?
Yes. I am an innovator. To build something truly useful, I must build upon the work of at least twelve others. If I have to pay royalties to them all, there's no way the royalties I collect will ever cover it. But I don't do it for the money. I do it because I am an innovator. I will innovate if I am compensate. I will innovate if I am not compensated. I will innovate even if I have to pay for the privilege of using my own brain. Google has demonstrated that they are (to some extent) of the same stock as me, and I think we'd all make more progress if we could pursue our passion to innovate without fear. If those who only innovate for money abandoned the game, that's okay with me--they are lousy innovators anyway.
we are working... to look at whether it would be right to stop people communicating via these websites and services
Article title:
Cameron threatens to shut down UK social networks
Bitcoin is based on a fallacy that they are valuable because they are scarce
They are valuable because they have several desirable properties. Scarcity is one of these properties, but you have forgotten several others. They are easy to exchange. They are difficult to track. They do not depend on a centralized server or organization. There is definitely demand for these properties, and so far, BitCoins are the only thing supplying them. That sounds like "value" to me.
I am not saying they will continue to go up in value. The market could be flooded with competitors at any moment since they whole thing is open source. I'm just saying that it is supplying something that real people really want.
God help those who do not help themselves. -- Wilson Mizner