Great points by many here. A few comments. Over 2016, BTC unfortunately did not live up to the promise of forming a scalable payment network, with lower fees and faster transfer / confirmation times. Going into 2017, I doubt this will ever occur. However, with that being said BTC showed its immense value as an asset class that people can and have fleed to in times of trouble, almost like a digital gold. Just like gold, my bet is that people will flee to BTC in times of trouble, and leave (partially) in times that indicate otherwise. Ultimately another digital currency will emerge that is better suited for nimble, quick transactions and forms the decentralized payment network that so many are predicting (my bet is that it's through the Ethereum blockchain).
I'm skeptical of the argument that just because BTC is viewed as a store of value and effectively limited in supply, people will hoard it, drive a bubble and ultimately it's demise. That hasn't happened with gold and unlike tulips, BTC will have much greater and frictionless distribution.
BTC may not succeed as money, per se, but I wouldn't bet against it being here to stay and am confident in its appreciation in value.