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Backing is for stuff that is not valuable in its own right, such as pieces of paper with pictures of presidents on them. Bitcoin is valuable for its properties, and it has numerous huge advantages over the fiat competition. Notice that these are not tiny advantages, but a large number of giant leaps forward:

Decentralised and free from control
Always running 24/7
International
No/low fees
New privacy model
Transparent system
Divisible
Secure
Fast transfers
No chargebacks
Environmentally friendly / efficient
Digital

I can spend them on over 2500 websites, donate $1 to wikileaks with no fee, instantly deposit/withdraw from poker/sportsbooks, get 5% off on amazon purchases, and do sub $1000 currency conversions for less than any other method. The IRS doesn't know about it, no one can sue me to take it, my wife doesn't get half of it in a divorce, and I don't have to worry about it being inflated away by the government. It increased in value by 1,750% in 2011 and 186% last year, more than any other asset class. This is a radically superior money compared to pieces of paper and gold, even if you only count what it can do right now, and this is just the beginning. All kinds of cool stuff is getting built into the protocol. The future will show the real potential of this disruptive technology.

More detail on these points at: http://bitcoinmedia.com/bulleted-advantages/

Of course Virtual Currencies will have a "negative impact on the reputation of central banks." Virtual Currencies like bitcoin have numerous huge advantages over the fiat competition. Notice that these are not tiny advantages, but a large number of giant leaps forward:

Decentralised and free from control
Always running 24/7
International
No/low fees
New privacy model
Transparent system
Divisible
Secure
Fast transfers
No chargebacks
Environmentally friendly / efficient
Digital

I can spend them on over 1500 websites, donate $1 to wikileaks with no fee, instantly deposit/withdraw from poker/sportsbooks, get 5% off on amazon purchases, and do sub $1000 currency conversions for less than any other method. The IRS doesn't know about it, no one can sue me to take it, my wife doesn't get half of it in a divorce, and I don't have to worry about it being inflated away by the government. It increased in value by 1,750% last year, more than any other asset class, and this year it is up over 135%. This is a radically superior money compared to pieces of paper and gold, even if you only count what it can do right now, and this is just the beginning. The future will show the real potential of this disruptive technology. Central banks and fiat will be a thing of the past.

More detail on these points at: http://bitcoinmedia.com/bulleted-advantages/

I don't think you understand why people use Bitcoin in the first place - it's used to reduce online transaction fees. A virtual cash that crosses all international borders. It's not for investing in. This is why stability helps with spreading its use, and this is happening. This article demonstrates how spikes in volume are no longer having much of an affect on the exchange rate.