Unregulated digital cryptocurrencies vs regulated national currencies: Is there a danger?

Bitcoins and Cryptocurrency coins on $10,000 straped stacks of $100 dollar bills cash money
(Image by Crypto360 from flickr)   Details   DMCA

A decentralized electronic system of payments which is independent of the existing traditional banking system. It is based on a new form of digital ‘currencies’ or ‘electronic currencies’  -  the ‘cryptocurrencies’  -  some observers have called the cryptocurrency innovation a sort of a new 21st Century digital gold rush.

Such private digital “cryptocurrencies” bear little resemblance to traditional national currencies which are issued and supervised by a government and a central bank and which are legal tender to complete sales and purchases.

They are not regulated, they have no physical counterpart, such as gold or silver, and they are not legal tender to serve as a means of payment. They are purely private entities..