Going forward, Lots of things are likely to affect the value of Bitcoins. It could benefit from real-world economic turmoil or be largely shut down by government regulators. I don't know which way the price will swing, but I'm highly confident it is going to move — a lot.
Its awe-inspiring volatility makes Bitcoins an enticing speculative investment, but not a viable currency. Real currencies are all about stability and consistency. You don't put your paycheck in a currency that could lose (or gain) huge amounts of value in the time between sitting down to dinner and paying for your meal. And that's why investing in Bitcoins is one thing, but trying to make them into a viable alternative currency is another.
Sign up for CIO Asia eNewsletters.