But then you have to trust that the issuer of your virtual currency actually has the means to back it.
Rather than just trade tokens which are valued for being the tokens that they are, you're trading tokens which COULD be worth what they say they're worth, but they also could not be worth what they're said to be worth.
It's like depository reciepts from banks in the 1800's. You put gold in. You got a ticket. You can spend the ticket. But can you really turn in the ticket to get your gold back? A pegged currency is akin to that, I think.
The world has many currencies and things work fine. Software that functions with dollars works with euros. And you exchange when you go to a "zone" (country) that uses that currency. No reason a brand new currency needs to be pegged to an existing currency. The issue is that there will be a huge amount of value created seemingly out of thin air. How to account for it? By expending electricity? By sending dollars to a company who says they'll keep them safe for you? Unless it's the Federal Reserve or a suitably capitalized institution, tether being that credible of a custodian for too long. I could be wrong, though. I'vebeen wrong on lots of things before.
All I'm saying is that putting aside the libertarian thing is fine. But there's no reason a borderless currency should be pegged in value to any national currency. So if you accept that, then you need to accept that it'll take the "market" time to figure out how to value this new currency.
I fully agree that Bitcoin is not it, though. And its holders, I mean, HODLers accept that too, many refuse to actually spend it, use it as a currency, and just refer to it as digital gold, and are fine with a payment network with crushing fees. That's fine. They were first to market, but they'll lose the race probably. I think a new one (or maybe on the already existing ones) will arise that is built for transacting, and will attract people who want to transact rather than attempt to hoard or get rich quick. But alas, we're still in the wild west days, people staking claims all over in hope that they'll strike it rich. Soon, I hope people change their mindset and try to build a new economy or economic engine. But that'll take time.