>It's all bits in a computer, but those bits are backed by a sovereign entity. That's why we are able to use them as currency. I've always felt this argument i

>It's all bits in a computer, but those bits are backed by a sovereign entity. That's why we are able to use them as currency. I've always felt this argument is disingenuous. People traded goods and services prior to government-backed currency. Being backed by a government sure does simplify things and make more people value it but it isn't necessary. Government-backed money can turn into Monopoly money as well. Lest you forget 1920's Germany [0]. [0] http://i.imgur.com/nk0CnNr.png http://i.imgur.com/nk0CnNr.png