This price of BTC is irrelevant to its function as a currency. If you believe it to have been an investment, that's your gamble.
As both a merchant and investor in the Bitcoin economy, the price DOES matter.
I am only exposing one of my 3 businesses to Bitcoin.
When the price was above $16 US, I offered 0.5 BTC per kg of my product (beef) (10% discount)
When the price was above $9 US, I offered 1 BTC per kg of my product
Today, I changed the price to 2 BTC per kg.
With a shit house derivatives market, I MUST keep changing my BTC price. That pisses me off no end.
Personally, I think I BTC = 1KG of prime beef, but my bottom line will not take it.
The price discovery phase is still in motion and I expect something as radical and AWESOME as bitcoin will require at least another 6-9 months for the real trading to begin.
Around about March 2012 which almost ties in nicely with the reward reduction to 25BTC.