Virtual currency makes sense to the generations raised with the internet, but can be confusing to older investors, savers and spenders.
In summary, a virtual currency aligns itself to no country or banking system other than its own. It exists purely as a digital entry in a database.
Fairness issues abound. Security issues are unfamiliar. Yet, the attractive features of virtual currency, so far, are: privacy and anonymity, no political attachments, increasing exchangeability with sovereign currencies and increasingly broader acceptance, relatively frictionless and cheap transaction fees.
The US Treasury is open-minded about virtual currency at the same time it is vigilant.
For the US Treasury’s view of virtual currency, please see:
http://www.treasury.gov/press-center/press-releases/Pages/jl236.aspx