The appreciation of bitcoin can be attributable to the interaction of these three components. Add to this straight speculative frenzy, visible in all bubbles, and you have the history of bitcoin so far.

It should be noted that the market manipulation noted above is a vulnerability not of the technology, or of bitcoin as a specific currency, but the need for a centralised exchange. In bitcoin terms, this reliance of centralisation is anathema as it requires trust. Bitcoin 2.0 is already being worked on to remove this need.