A friend of mine is determined that digital currency can only work if it backed by gold (or something) and has regulations exactly like the current system in alot of ways.

The regulation part is tricky, because clearly thats the only thing that saved it from the mtgox hacking.

Magic: The Gathering

http://www.youtube.com/watch?v=c2Yi5jcx38Y

bitcoins are backed by time or proof of work, it's the only currency to take time into account when dealing with money

How is intrinsic value "weird shit"?

 

Depends on the shit I suppose. If I ate a hearty meal of gold dust and passed it out my colon -that would be some intrinsically weird shit. Or, alternatively I could eat some dollars green toilet paper and take pleasure knowing I'd be adding more value to it as compost than I would actually 'spending' it.

Indeed. LMAO.

The terrible community surrounding it.

Who are you kidding? The "purpose" of mining is, in reality, whatever incentive is provided to have people commit time and energy to it. And that is to get BTC not, securing the block-chain. You are a fool if you think otherwise.

True, a monster truck rally with flaming bitcoin jump hoops would certainly draw the crowds. Or perhaps 'Bitcoin Aid' concert to end hunger in Africa, all paid for via bitcoins, of course. I mean, you could probably write a long dissertation within economic circles about bitcoin, but then all of your peers would have to put down their models and bits of logistic fantasy to actively participate.

I just don't see that happening, you can't 'predict' (or pretend to, as is usually the case) in economics if you aren't futzing with a model that gives answers that are 'revised' later. That's a lot of looking-over-your-shoulder work there, and it doesn't come easy!