user5960: Say in a few years Bitcoin is where we hope it is, like $1000 or even $10000. In such a scenario one cent is about 1-10 microBitcoins (1 millionth or 0.000001 BTC).
In my experience, attempting to use bitcoins for small transactions (even of order 0.001 BTC) usually either takes a very long time, or just doesn't get processed at all. It thus worries me that BitCoins cannot be used for small transactions which correspond to a big and important part of the economy (e.g. a kid buying a Popsicle, or giving a $1 tip, or buying bigger stuff in third world countries, etc.)
Does anyone has a useful perspective on this issue?

user78: The answer is multifaceted.

Microtransactions were not a design goal of Bitcoin. Even if they're not well supported, that's ok.
Off-chain transactions might be used if on-chain microtransactions are too expensive.
There are a few possibilities to implement microtransactions on the blockchain. One such implementation was recently added to bitcionj. Also see this interesting proposal for nondeterministic nanopayments.
Alt chains for microtransactions are a viable solution as well.

TL;DR - it's not a problem.

5960: <p>Say in a few years Bitcoin is where we hope it is, like $1000 or even $10000. In such a scenario one cent is about 1-10 microBitcoins (1 millionth or 0.000001 BTC).</p>

<p>In my experience, attempting to use bitcoins for small transactions (even of order 0.001 BTC) usually either takes a very long time, or just doesn't get processed at all. It thus worries me that BitCoins cannot be used for small transactions which correspond to a big and important part of the economy (e.g. a kid buying a Popsicle, or giving a $1 tip, or buying bigger stuff in third world countries, etc.)</p>

<p>Does anyone has a useful perspective on this issue?</p>
 78: <p>The answer is multifaceted.</p>

<ol>
<li>Microtransactions were not a design goal of Bitcoin. Even if they're not well supported, that's ok.</li>
<li>Off-chain transactions might be used if on-chain microtransactions are too expensive.</li>
<li>There are a few possibilities to implement microtransactions on the blockchain. One such implementation was recently added to <a href="http://thegenesisblock.com/off-chain-micropayments-implemented-in-bitcoinj/" rel="nofollow">bitcionj</a>. Also see this interesting proposal for nondeterministic <a href="https://en.bitcoin.it/wiki/Nanopayments" rel="nofollow">nanopayments</a>.</li>
<li>Alt chains for microtransactions are a viable solution as well.</li>
</ol>

<p>TL;DR - it's not a problem.</p>
