Ron Paul is correct it is not money.  Bitcoin is no different than a pokemon card.  But unlike a pokemon card they are each identical (there is no Charizard).  The only reason bitcoin has value is people give it value.  If it drops to $1 a certain type of person will buy more.  If people use it in a transaction, many will keep a couple coins for later purchases.  These coins are collectibles, as are pokemon cards.

Bitcoin as a collectible give it value.  Once it has any value, it can be traded as a currency.  Everyday bitcoin usually strengthens as a collectible.