[G3n0t]

The question of value is one of the most fundamental ones in economic theory. It's got nothing to do with crypto currencies or technology in general. If you really want to understand why we consider Bitcoin valuable (and btw: fiat money, too) go google for "subjective theory of value" and, more specifically, "regression theorem".

[2muchcoffeeman]

But you can’t actually use Bitcoin for anything?

The Regression Theorem, first proposed by Ludwig von Mises in his 1912 book The Theory of Money and Credit, states that the value of money can be traced back ("regressed") to the goods and services it obtains. In other words, money is backed by some commodity that has intrinsic value.

Recently, there has been a debate about applying Regression Theorem to Cryptocurrency such as Bitcoin.[1] Since Bitcoin (for instance) is not backed by any commodity, it appears to fail the definition of a currency according to the Regression Theorem. Others hold the view[2] that Bitcoin does fit the definition as it is at once a payment system and money, with the source of value being the payment system.

[G3n0t]

> But you can’t actually use Bitcoin for anything?

Well, in US and Europe this is certainly true. I've yet to see a reasonably large shop accepting bitcoins. But my vision is blurred by the fact I am living in a wealthy Western country that has a comparably free banking system.

In other parts of the world, South America for example or Asia the situation is difficult for the average Joe to earn savings either due to galloping inflation or tight banking regulations. In those countries street markets are practically run by crypto currencies or derivatives.