In reply to Ed Starrs.

The basis for value is whatever the market is willing to pay for a bitcoin. That is currently $380 dollars or so. If it didn't have a basis for value then it would be valueless, which based on the fact that hundreds of thousands of people are buying bitcoins or fractions of a bitcoin with fiat currency, is factually incorrect. Dollars can be moved with fees and frictions. They are limited by borders and transferred through proprietary systems that are for the most part not interoperable. Can you transfer $40 from California to Uganda in 10 minutes for $0.04? $1,000,000 for $0.04? Didn't think so.