[kragen]

Holding your savings instead of entrusting them to a bank prevents the government from freezing them. If you try to do this in cash, you lose the ability to transmit them over the internet, and it's easy enough for burglars (or enterprising traffic-stop cops) to just walk away with your savings. Bitcoin allows you to hold your savings without losing the ability to spend them.

It's true that you still need to convert them to local currency to spend them, same as US dollar bills, which are the popular savings vehicle here in Argentina. Around here, mostly the same networks of illegal money-changers handle dollars, Bitcoin, and gold jewelry, though there are some that only handle one or two of these.