@aviad_raviv I agree with @taygibb - Testing with a loopback address can tell you if your TCP/IP stack is working in spite of any misbehaving firewall/Anti-Virus programs.
On a related note, one advantage of using the loopback address rather than the IP of the host for internal communications is that does 'shortcut' the firewall, anti-virus, hardware drivers, and their filters, and is, therefore, much faster.
@MrPaul That's interesting. I wasn't aware of that. I was always under the impression that the broadcast address was the address one used to broadcast to all on the current subnet.