What goes up could also go down. I've seen it happen in my adult life to gold (in the 1980s), to housing (twice, once mostly in Texas, completely killing off the savings and loan industry nationally, and more recently all over the world), and to petroleum multiple times. As I have posted before here on Hacker News, perhaps the greatest contribution the Bitcoin experiment will make to humankind is to teach you and me and our neighbors more about the realities of economics. Many of the ideas about how to mine Bitcoins, store Bitcoins, and trade with Bitcoins as a medium of exchange illustrate both the strengths and weaknesses of any other medium of exchange in a world full of human beings. Seeing the discussion of Bitcoins here on Hacker News reminds me of the last time that the price of gold (in United States dollars) crashed, and the arguments beforehand that such an occurrence was impossible, for instance. "The market can remain irrational longer than you can remain solvent" is still an important principle of investment.
If the bubble keeps repeating, it is still an opportunity for speculators who can do the timing right.
Personally I'm long on bitcoins, I do dollar-cost-averaging. Good way to do this is for example bitcoinbuilder.com, or 10-line python script will do the same thing.
