Sorry - when referring to encryption, i didn't mean encryption surrounding coins.
So - when sending funds and receiving coins from mtGox, it's essentially a person(s) doing this. This is what I'm referring to. I think for the 'average joe' to accept this (assuming they even check) would take a whole perception shift. PayPal is PayPal. People know PayPal and "trust" PayPal. What's the driving factor here? I'm in to BitCoin because it avoids major institutions? Because there are lower fees? Why do I decide to start using BitCoins (hypothetically speaking of course).
Bitcoin is a different currency. You buy bitcoins like you buy euros, us dollars or any other currency.
MtGox is an exchange. There are people selling bitcoins and people buying bitcoins at MtGox. That is what drives bitcoin's price up and down, just like in the stock market, forex, etc.
Why use bitcoins is an interesting question that we could talk about all day long... There are some key points I think:
- Lower fees than credit cards
- Universal (I can send money to my cousin in australia and I don't pay extra for that)
- Private (you don't need to have my name, address, etc. if you want to take a payment from me)
Many people are in it for curiosity, others because they can mine with their computer and others because they can order drugs online with it. It really depends...