There is a misconception that money needs to be a store of tangible value. This country had a successful fiat system before the Revolutionary War for a long time because it was responsibly controlled in relationship to goods and services, no inflation and no boom busts (which do not occur naturally in healthy economies). Its value was usage level and trust in the issuer(s).

Kib is exactly right, Yossarian, about the currency being used today. We haven't had substance redeemable currency for many decades. But, we don't have just simple fiat either. We are using debt instruments as dollars. All dollars are created out of a demand for debt, as debt and the interest owed is not created with which to pay back that debt (read Modern Money Mechanics issued by the Federal Reserve). This means that most fiat currencies are Ponzi schemes that slowly decrease spending power. It is a profit system for banks and explains a lot. So, what is used as money matters a lot.

The value in Bitcoin is that it is frictionless currency: no third party interlopers and near instant transferability with a level of encryption that used on nuclear silos. There is also incredible value in the block chain itself which is open source consensus of all transactions of any type.

There is no such thing as "intrinsic" value. What is abundantly available and needed has no value, even if it is food. That which is limited/scarce and desired is what gives a thing value. Bitcoin has that feature also. It is deflationary.

What determines value is not a government or old ideas of value about things like gold. Value is determined by demand/scarcity and a currency is determined by the level of usage, no matter what any one says.

In Kenya a currency evolved out of cell phone minutes because the people saw its utilitarian value. It now accounts for 40% of the Kenyan GDP. Bitcoin also has amazing utilitarian value far beyond a currency. Currency is just the first app.