Bitcoin has value because people think it has value and will have even more value in future. The problem is bitcoin is not really suited for transactions, it has very high fees and is super slow and will not scale well. That's why many people suggested it has store of value and call it the "virtual gold". I see a fundamental problem with this. Most likely there will be a time in the future where even mainstream people realize that some other currency is much better for transactions (LTC, XPR, Facecoin or whatever new currency) because it was adopted by Amazon, Facebook, Google etc... and Bitcoin is obsolete technology and useless in most aspects. When that time comes BTC will lose its value. As for now most mainstream newbies do not understand or know anything about this, so that's why we see high value of Bitcoin.