So how are they created? Is there anything of lasting, stable value assuring they have a value? I realize that our money supply is bogus and nobody's seen the gold, but the government manipulates commerce in a way that gives us confidence that I can exchange money for goods.
Heck, why don't they just use tulip bulbs to back it?
“So how are they created? Is there anything of lasting, stable value assuring they have a value?”
The creation process for BitCoins involves computers running algorithms. I’m sure you could find volumes about the process with Google, but it will all boil down to that.
There is absolutely nothing of lasting, stable value about BitCoins. If some Russian hacker figures out how to crack their system and counterfeit them their value could go to zero in minutes.
What is it that you think gives the US dollar intrinsic value? It has lost 95% of its purchasing power since the early 1900s. The dollar used to be backed by gold, but now it is backed essentially by the international community being willing to accept it in trade and as a “reserve currency”.