Bitcoin is useless as a currency. It is naturally deflationary, which makes for a terrible currency as no one wants to spend a unit of currency that is going to be worth more tomorrow in real terms.
What bitcoin is useful for is simply as a store of value -- as digital gold. In that regard it is working perfectly. It is a well defined property right on a good with limited quantity.
Given that there will be way fewer transactions for a store of value than for a currency, I am not as concerned.
Further, it makes sense for its value to soar as more demand increases for it as a store of value. I'm not saying it isn't a bubble -- it will likely correct at some point. But long term I think it will still hit $100K to 200K per coin given the limited supply and still increasing group of people who will use it as a store of value.
