Like any other fiat currency, everything is fine until you have it when it devalues. If you have it and then exchange it for goods of real value, and then the bitcoin thing goes belly up - you're not hurt. The guy who didn't spend it yet is.
Here's the thing: counterfeiting is illegal for good reason - the money supply would increase and devalue the other "true" currency whether dollars, euros, etc. Since Bitcoin depends on an "unbreakable" cryptography (where have you heard that before?), once someone breaks it and figures out how to make bitcoin data packets that did not previously exist, it's the same as counterfeiting and the bitcoins will plummet in value.
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