Based on this discussion, I hereby propose a new country of the Internet, to be called "Bitland".
* What is it?  Open source, libertarian, democratic goverment of the Internet, similar to the way that Bitcoin (and the altcoins) are.
* Why is it needed?  To have an explicit, codified set of principles for governance of the Bitcoin community and its interactions, particularly business transactions.
* How can a government exist without land?  Yes, but how can a currency exist without an army?  It does so based on its attractiveness, by the willing participation of its members without the use of force.
* How does Bitland collect taxes?  It doesn't, it runs on donations for any necessary expenses.
* What does the government consist of?  A constitution, bill of rights, and set of laws that can be forked, modified, and improved, just like the Bitcoin software can be forked.
* How to start it?  Use a wiki to write the constitution and bill of rights.  Everyone votes.  90% acceptance means the constitution is valid.  90% vote needed to amend it.
* How to create laws?  Anyone can write a proposed law.  Summon a representative assembly and vote, with 2/3 majority needed for acceptance.
* How to become a citizen?  Either you are one of the 90% who voted for the constitution, or you swear to obey the constitution and laws and are admitted by a jury of citizens.
* How to quit from Bitland?  The same way you joined, only you repudiate your citizenship and your repudiation is acknowledged by a jury of citizens.
* How does Bitland regulate the activity of non-Bitlanders?  It doesn't, it only has jurisdiction over those who voluntarily agree to follow its laws.

Imagine that we create a new Internet government called the Free, Independent People of Bitland (FIPB).  What's the point?  Well, for starters, when you're doing international transactions, who has jurisdiction?  We need a lightweight, instant, Internet government that can play a binding role in judging Bitcoin disputes.  That way, someone doing business in Bitcoin can say, "I am a citizen of FIPB" or "I am a Bitlander" and you automatically know what common rules are expected.  If someone steals your coins, or doesn't deliver your product, or misbehaves generally contrary to the laws of Bitland, you can bring charges and summon up a jury of their peers, who can decide between them in a legally binding arbitration, thus avoiding the slowness, messiness, and jurisdictional disputes of existing governments.  If anyone refuses to accept the results of arbitration, they can be fined or expelled.

Later on, if the Bitland concept becomes popular, you can worry about obtaining real estate.