The value of the Bitcoin currency is driven by speculation. The value of the Bitcoin system-for-distributed-transactions is driven by utility.
If you don't trust the value of the Bitcoin currency, that doesn't stop you from using the Bitcoin system as a replacement for Paypal et al. for 1) anonymous transactions, 2) payments to a trusted recipient, and 3) micropayments.
Exchanges will compete to convert Bitcoin into your "trusty" local peso/lira/drachma, although their primary customers will probably be speculators for the near future.
Comments
The value of the Bitcoin currency is driven by speculation. The value of the Bitcoin system-for-distributed-transactions is driven by utility.
If you don't trust the value of the Bitcoin currency, that doesn't stop you from using the Bitcoin system as a replacement for Paypal et al. for 1) anonymous transactions, 2) payments to a trusted recipient, and 3) micropayments.
Exchanges will compete to convert Bitcoin into your "trusty" local peso/lira/drachma, although their primary customers will probably be speculators for the near future.