Comment: Actually you can hold it and people can beat it out of your hand

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Garan's picture

Actually you can hold it and people can beat it out of your hand

The spending of a bitcoin requires a (hopefully) private key.

That key can be carried around on some kind of media, even printed on a piece of paper.

That key can be exchanged for goods directly, if someone is willing to accept it.

Otherwise, that key can be used like the electronic password to your bank account to perform a transaction.

From what I understand, most dollars aren't physical dollars at all, just numbers on some machine. So, we are already using virtual currency.

The common denominator is faith and trust.
Faith that the currency has value by those involved in the transaction, and trust in whatever system is used to store and direct the currency.

So far, that's what I've been able to gather from various discussions of currency in general and discussions on bitcoins.