Overstock.com is the first major online retailer to accept bitcoin as payment along with many other minor sites. I hear about a few fringe coffee shops in Europe that accept it, charity's usually take it, And of course transactions between private individuals. It isn't widely known or accepted, but let me tell you, once the big names start accepting it (Ebay, Amazon, etc) we're going to see some big moves in the price. As fringe as it is right now, if it went mainstream it could easily go $5000 a coin. What makes it risky though is if a jealous government like China steps in and bans it, that would put a real steep curb on demand.
I think bitcoin is a huge step toward freedom. It's letting people realize how unnessecary governments are. It essintially privatizes currency.
If a government were to step in and ban it, it would clearly demonstrate how they have a monopoly of force. If the free market naturally gravitates towards privatized bitcoins the governments would have to say,"No! You must use our inferior method of payment or else we will imprison you!"
