But Banagale comes back again to the idea of Bitcoin as a currency backed by gold.

FORBES: Bitcoin or Gold: Which is More Fiat-Proof?

Their best response to Bitcoin is irrelevancy, or failing that, extreme gold-like market manipulation for as long as possible.

FORBES: Government Ban On Bitcoin Would Fail Miserably

Two bitcoin digital attributes that make it superior to physical gold are its ability to create backups and its difficulty of confiscation.

FORBES: Bitcoin Obliterates 'The State Theory Of Money'

The digital currency exchange operated by Dominica-based Aurum Capital Holdings, Inc. supports bitcoin as well as Liberty Reserve, Pecunix, Perfect Money, and c-gold and they offer two choices for cashing out into a card-based product.

FORBES: Bitcoin Funded Debit Cards

Like Bitcoin, the world's dollars, euros, yen and pesos carry no guarantees they can be redeemed for gold or some other commodity at a fixed price.

WSJ: The Weekend Interview With Gavin Andresen: Bitcoin vs. Ben Bernanke