Re: So someone steals something that doesnt exactly exist
The inherent value of a lot of things are overstated. Sure, you can make jewelry out of gold, but if that's the only reason people were using gold, we'd do a lot less mining for gold. If everyone decided tomorrow that gold only has value for the stuff we're going to make out of it, like many other metals, the price would fall quickly. Gold wasn't used as a medium of exchange because there was a lot of demand for jewelry manufacture, but because it was hard to counterfeit, relatively portable, and barter got too complicated. Similarly, fiat currency's value isn't just taxes, but that you can use it to pay people for stuff that you want. In situations where you can't do that, it stops being valuable, even when you can still pay the taxes with it. Countries where the currency has collapsed see the use of other currencies because they're more useful in obtaining needed commodities even when taxes can't be paid in those currencies.
Bitcoin's not being used as a currency, but not because it doesn't have value. It's not being used as a currency because it's crap at being a currency. It is not accepted in many places, so you can't use it exclusively. Typical transactions are costly and slow, which doesn't apply to used payment methods. The value jumps around all the time, which while better than something that's always inflating, means that people can't be sure of price stability. For these reasons, those who have Bitcoin tend to treat it more as an investment commodity than as cash, which exacerbates a few of these problems.