ELI8 (i feel like a 8 year old) - I've been doing research about the Gold standard and how it works. I'm trying to wrap my head around the concept to get a better understanding. http://money.howstuffworks.com/currency7.htm

I've searched the forums too and found https://bitcointalk.org/index.php?topic=24541.0 which further reinforced my knowledge to a certain degree.

My two questions are;

1. If it were backed by something, what does it mean to cryptocurrencies?

2. Is it a good thing or bad thing ?

[struggle to regulate the five-year-old “cryptocurrency”]

http://www.businessinsider.com.au/r-australia-probes-bitcoin-crime-links-as-currency-craves-legitimacy-2014-12

SYDNEY (Reuters) – A top Australian law enforcement agency is investigating bitcoin’s role in organised crime, a senior official said, just as politicians and financial regulators embrace the digital currency as a legitimate part of modern business.

The investigation into bitcoin’s crime links by one authority as others embrace it highlights the crossroads governments have reached as they struggle to regulate the five-year-old “cryptocurrency” a method of making anonymous payments which has surged in popularity around the world.

Lets discuss their "struggle".