Do bitcoins have an actual currency exchange rate that’s provable and legal? Can I get online and convert cash to bitcoins just because I wish to?
The exchange rate is what people are willing to pay, like beanie babies.
Yes probably, I bought bitcoins using moneygram. The website took my order and then I went and paid cash at moneygram and boom bitcoins in my wallet(software wallet).
Let’s say I have $25k worth of bitcoins on thumb drive.
How do I turn that into a new Honda? Will the dealership verify my thumb drive and let me drive off?
You take your thumb drive to a bitcoin exchange, and go through the computerized transaction to transfer the coins to them, and they give you $25k in a more conventional form (probably a direct deposit to your bank account). Then you go to the car dealership and buy the car in the conventional way.
You could skip the middleman if the dealer is willing to take bitcoins himself, but he probably isn’t.