[escaped_hn]

I don't understand bitcoin (any links for newbies?). Why can't they just make it equal to the US or a Euro but use the bitcoins for the actual transaction which would still grant you the anonymity you want and not have this bubble behavior?

[craftkiller]

The issue is the price is not set by anything. Someone could set up an exchange where they sell bitcoins at 1 US dollar but then everyone would buy all their bitcoins and sell them at other exchanges. Right now the only thing saying that bitcoins are worth $40 each is that someone is willing to pay $40 for them.

edit: link for video http://www.weusecoins.com/