Using simple physical arguments we investigate the capabilities of a quantum computer based on cold trapped ions of the type recently proposed by Cirac and Zoller. From the limitations imposed on such a device by decoherence due to spontaneous decay, laser phase coherence times, ion heating and other possible sources of error, we derive bounds on the number of laser interactions and on the number of ions that may be used. As a quantitative measure of the possible performance of these devices, the largest number which may be factored using Shor`s quantum factoring algorithm is determined for a variety of species of ion
