If an asteroid fell to earth and it contained a unique, safe and unreproducible material that is divisible enough such that every person could have a small part of it, this rock would not initially have any value other than a curiosity. 

If it took a significant amount of effort for 'miners' to break up this material, and the more of it that is removed the more difficult it is to acquire the remainder, the value of the individual quantity that had been removed from the asteroid would continue to increase so long as there are people that want it. This causes all of the past components of the asteroid that were removed to increase in value.

One unique aspect of this rock is that it can be physically transferred from one person to another through a simple phone call... this is Bitcoin.

The value of a quantity (be it fiat, hard money, or otherwise) is dictated by the latest amount of value exchanged that is required to produce or acquire another unit of that quantity.

Bitcoin is hard fiat. (paradox intended)

Economists say that bitcoin is a form of free-market fiat because it is unbacked and has no 'inherent usefulness' apart from being a money. Economists also say there is no such thing as intrinsic value, but part of their argument against against bitcoin is the lack of 'inherent usefulness'. This is a play on words, and a contradiction. Being a superior money is in itself a use for a thing, so the first assertion (that it has no inherent usefulness other than being a money) is a red herring.

Bitcoin is the market's response to runaway sovereign debt, this is why it is a superior money. Bitcoin is a solution to the problem of sovereign debt and central banking.

Up until now, fiat was the best solution we had to the problem of taxation during war. Now we find ourselves in a continual state of war.

Governments exist because the general belief is the role of government is necessary and it is in the interest of the people to establish one. Whether this is true is up for debate, but this what your average neighbor has come to accept.

The problem with government is it must be comprised of people. These positions of power have a moral hazard. Whether people  part of this institution have  intentions that are idealistic or self-interested is inconsequential, it is the role itself that necessarily must be at odds with the people they serve.

Governments are lead by incompetence and envy and consequently are at odds with the people that place them in power. 

A government's customer is the people of the nation, and the people are considered irrational in comparison to the objectives of the institution that provides this governance. The people appear like an unruly customer, however no business continues to exist without patrons. The patrons are those who continue to believe in the charter and order of the institutions system.

When a business finds backdoor access to their customer's wallet through inflation, the business no longer has incentive to serve the people and it begins to serve it's own interests. This business quickly transforms into a burden on its customers.

Bitcoin is how the people take away this power away from its government. Bitcoin doesn't necessitate the abolition of government, rather it necessitates minimal government. It promises to shed light on every detail of what government does, and this happens by placing the power of the customer's purse back into the hands of the customer.