Well in response to the other posts I DO think bitcoins are revolutionary and a series of speculative bubbles. With only 21 million coins being available and with demand increasing every year isn't it common sense that the value will go up? Granted there are no flaws and no major event that kills bitcoins (the Baidu shit can't be enough). I don't believe in all the rubbish people produce with charts showing bubbles and patterns. If there is ANY pattern/trend that is true to bitcoins, it's that the price has always been increasing
This is just shear idiocy. No there isn't a law that states the Bitcoin Network must appreciate in value. Also it can be replaced at any time by a new payment network with superior features. Do you have any data on usage and demand for coins? Do you have any data on the hoarding behavior or the users? No, you're just making an overly simplistic assumption almost as wrong as Homer's belief about stock ownership:
http://www.youtube.com/watch?v=mQI___0B00M.
Bitcoin is the first of a group of technologies that will eventually change the way global finance works. There is no law to force Bitcoin to be the technology that receives all the value. It is the first. Feathercoin with enough devs could actually beat Bitcoin.
Technically its difficulty is its appreciation.
Like all assets it has a perceived value (the speculative side) and its base value (cost to make).
For instance, if gold fell below $1000oz, and if the reports on gold extraction costing roughly $1000 an oz are true, then the base value of gold is 1000oz, the fact it sells for 1200oz is due to its 200 perceived value ontop of the 1000 base.
If it fell below the $1000 mark it would be hoarded as nobody would sell.
With bitcoin, if it stayed below the value of all the mining gear and power bills (the base value) it will probably stop being mined in mass, and won't be sold at a loss. This will open up altcoins though.
