Dave,
First off, let me say I am neutral in this debate… I am not arguing for or against Bitcoins. I am skeptical about it, but if others want to go and take the risk, more power to them. But I do not think that ‘intrinsic value’ has anything to do why I am skeptical about Bitcoins. It is contradictory to say such a term in my opinion because value is subjective. This reminds me of a topic on this forum a few months back dealing with this whole intrinsic value thing. If people value X, then X is going to have value, if people dont value X, then X is not going to have value.