I see bitcoins as a religion, just like gold "investing". The $4,000 price tag is impressive, but make sure it's viewed more as a tech stock than a currency. I mean, sure, it's used to buy/swap things online, but a big chunk of the people holding the 21 million bitcoins are just hoarders/miners waiting (encouraging) others to use their butcoins in hopes of pushing up the price.

I guess it's cool to use to purchase black market **** and drugs online, but I'm not gonna use it as a currency. I think the only people it will appeal to are people that are truly paranoid about the Federal Reserve, and don't already hoard gold bullion in the Idaho bunkers.

As far as what it's backed by: nothing. No protections.