Bitcoin didn't crash, an exchange got hacked. People need to know the difference between bitcoin itself and exchanges.. They are 2 totally separate things. Bitcoin went from a nerd currency that noone cared about to mainstream in a very short period of time and noone was ready for it especially the exchanges. Since then they have increased security dramatically.
I agree physical things are best to have first and foremost.
It was only a matter of time before the internet came up with its own way to transfer value.. even though it might not be "real". E-mail isn't "real" but people seem to use that quite well.
As far as the CIA, I'm sure they are interested in Bitcoin, why wouldn't they be? What better way to move their dirty money around?
People also tend to forget that bitcoin is open source which means anyone can review the code. I can't read code but there are hundreds of nerds (libertarian nerds) that do know how to read it, in the bitcoin forums. If there was anything malicious in there you would know about it pretty quickly.
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