The problem with bitcoin currently is the fact that it has very limited use. Almost anything you can buy with bitcoin can be paid with fiat currency (it's cheaper too), and the only real use for bitcoin is purchasing illegal goods and services. The bitcoin economy needs more goods and service providers to make sense for people to convert their fiat to bitcoin. Also, a major use for bitcoin is to invest it to make more bitcoin, but without things to purchase it will lead to falling valuation. I fear the price will continue to fall until there is a crisis similar to Cyprus or some other event which creates public awareness.