Bitcoin and other crypto currencies are not currencies in the normal sense. They are not money because they are not legal tender backed by a government nor are they backed by a riskless asset. They are speculative assets like the Dutch tulip fad or like wildcat bank paper money in the 1830's-1860's. Yes, you can make money investing in them but there will be an inevitable run on their value. Only a matter of time unless legal activities somehow maintain their exchange value. They are indicative though of the movement of finance to shadow banks and unregulated markets because of the high regulatory cost burden we have placed on National and State chartered banks.
