Bitcoin has finally regained some credibility as an alternative currency, since it has again broken the $30.00 barrier; a feat that some thought was impossible. 

For a fledgling currency in it's infancy, Bitcoin has proven to be very resilient. Bitcoin has just regained 98% of it's all time high price (this week) as it has again broken the $30 barrier, not seen since 2011. 

Since Nov 2011, Bitcoin has flirted with downward pressure and dropped in value  until the middle of Nov 2012. However, since Nov 2012, Bitcoin has risen from a stable $10/Bitcoin to a level of $30/Bitcoin. 

The exact reason for the substantial rise in price for Bitcoin is not known. However, the popularity of Bitcoin continues to increase with the new ASIC technology released by some of the vendors.

Additionally, some businesses are now paying their employees in Bitcoins. 
See the article from the Internet Archive (HERE).

How did Bitcoin do as an investment in 2012?

World Currencies
First, lets check how all currencies did in 2012. Here is a brief summary of the top 10 currencies for the year. As you can see the emerging markets had the highest performing currency. 














http://soberlook.com/2012/12/the-2012-winner-for-best-performing.html

Bitcoin
However, there is one currency or commodity that is missing from this list...namely Bitcoin. Overall, Bitcoin was up remarkably in 2012. It opened the year at $7.00 USD / Bitcoin and currently stands at $ 13.54 USD / Bitcoin. This calculates Bitcoin return at 193.4% YTD.

http://bitcoincharts.com/charts/mtgoxUSD#rg360zigDailyztgCzm1g10zm2g25



Gold
If we compare how a similar commodity like gold performed in 2012, we see the following return on investment. Overall Gold began the year at $1560/oz and currently stands at $1663/oz. This calculates Gold return at 6.6% YTD.

http://www.monex.com/prods/gold_chart.html

Summary
So, does this mean that Bitcoin will continue to appreciate in value for 2013?
It's unclear at this time that will happen, however the future of digital currencies seems bright considering the pending problems with traditional fiat currencies like the US Dollar, who's economy is headed for the "fiscal cliff" with only 3 days remaining in 2012.