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.
What people chanting the whole "Bitcoin is not money because its only value is imaginary, its just because people give it value, etc, etc."
Is WHY people give it value.
It has value BECAUSE of the reasons WHY people give it value. It does not have value just because 'people give it value'.. Media and such tend to ignore this point, which is kinda key ..