Quote from: Jutarul on November 02, 2012, 04:55:02 PM

Quote from: God Almighty on November 02, 2012, 05:11:17 AM

I can't pay taxes with it. I can't fund my credit card with it. Why do people value Bitcoins at $11 a piece?

Quote from: God Almighty on November 02, 2012, 04:47:22 PM

A US dollar is recognized as cash because people have to accept them for debts including taxes. People are forced to trade oil for them all around the world. Bitcoin has nothing like that so why is it even used as money? That is my question. But it seems since some geeks like it, others rely on that value when holding and using Bitcoins.
This is very different... almost religious...

1) Bitcoin removes the counterparty from the currency. You do not have to trust a government. You instead have to trust in mathematics and the stability of a self-regulated community. (as such there is still some trust required)
2) Bitcoins are cash like and are superior to cash on many levels (money on your bank account is not cash)

Here's some homework for you: try to do a cash-like transaction with someone in another country

Okay, it's easier to trade Bitcoins around the world but what makes them worth trading for? Why would I want a Bitcoin over a half ounce of silver?