We do understand it bitcoin. You can think of bitcoin as "backed" by speculators. It has a market price, because speculators will give you other currencies for

We do understand it bitcoin. You can think of bitcoin as "backed" by speculators. It has a market price, because speculators will give you other currencies for it. That is what makes it useful for value transfer (trade). And the more it is demanded for trade, the more liquid it will be, leading to less volatility and less risk for speculators. Whether the price holds up in the long run or crashes to near-zero is impossible to predict. But it is now safe to say that it could go either way. It depends on the choices of people and governments. Bitcoin has already proven (or very close) that digital currency that is purely a financial asset (not demanded for jewelry, industrial use, or taxes) is viable. I don't see how bitcoin not meeting certain a priori definitions that were created before digital currency was even a possibility, are relevant. It seems likely to me that the blogger is either confused about abstract ideas relate to reality, or is dishonest.