> can't get past the idea that a currency needs to be backed by a state to be a real currency. That's the most ridiculous claim ever...currencies existed long before nation-states ever did.

I think if you examine those economists' arguments further, you'll see it doesn't have as much to do with "OMG where's the state???!" as you seem to think.

As you yourself point out, economies have worked since long before nation-states have existed, so maybe the Bitcoin evangelists might want to recognize that being "like gold but with bits" doesn't change all the economic rules.