All right, lets look at the three purposes of money here.
1. Money as a medium of exchange. Bitcoin does this well for some people - drug dealers and other unsavoury types who need to transfer large sums of money discretely. For the rest of us, it kind of sucks because we can't exchange it at very many places. On a weekly basis, I need to exchange money for goods at places other than those dozen restaurants in Vancouver.
2. Money as a store of value. Bitcoin fails at this because it's too volatile. And this is even before we take into account people storing their value in bitcoins and then storing those bitcoins in reliable places such as Magic: the Gathering Online Exchange without the pesky big-brother government throwing up a bunch of red tape and regulations like deposit insurance.
3. Money as a measure of value. Again, Bitcoin fails at this because it's too volatile. Were I selling stuff, I wouldn't price things in bitcoins because it's so volatile that I'll have to go around changing the pricetags on everything. I'm guessing that those restaurants in Vancouver that accept bitcoin probably do their prices in $CAD and simply look up the bitcoin exchange rate of the day if someone happens to come in wanting to buy a sandwich with bitcoins.
Anyways, since you said you're answering questions about Bitcoin, I have one. You say that the value of bitcoin "isn't the speculative number on an exchange, it is in the code. It is about the technology."
So, here's a graph of the value of bitcoin and trading volumes over the past six months: http://bitcoincharts.com/charts/bitstampUSD#rg180ztgSzm1g10zm2g25zv
If the value is in the code, why did the value of a bitcoing go from $100 to over $1100 to $600 in just six months? What changed in the code and the technology to make bitcoin worth 11x as much, then lose half that value, over a period of six months?
And, why does that chart look suspiciously like the value is being driven by speculation, with big changes in value largely coinciding with high-volume days?