What is the solution?
It is simple, straightforward and already here. Currency stable assets. Businesses can hold the stable currency asset while we can hold the unstable crypto-currency that backs it. The more demand there is for the stable BitCurrency the more the value of the backing currency increases.
Using the same example above
You have an online retail business - If your next 3 months of expenses - staff, rent, utility and average supplies totals $45 000 and you make 50 000 BitUSD. How much of it can you keep in BitUSD and pay your expenses as they're due, knowing that you'll be able to meet them? The answer is you can keep nearly all of the earnings in BitUSD.
Overstock for example tried to keep a bit of their sales in Bitcoin and probably got bitten with the price fall, whereas they could have kept it in BitUSD & not had that problem while still supporting crypto-currency.
I think this is fairly straightforward and I have yet to see a decent rebuttal to this argument.
What are currency stable assets? How do they work?
They are assets that hold the value of currencies like USD and others on a blockchain.
On coinmarketcap there are 3 in the top 40. NuBits, CoinoUSD & BitUSD
CoinoUSD is a user issued asset that has dollars in an actual bank backing it. I don't like that because it's centralized. https://coinomat.com/coinousd.php
NuBits is a decentralized dollar stable asset controlled by holders of NuShares and it creates and controls the currency supply similar to how a central bank does https://nubits.com/about/white-paper#buy-side-liquidity
BitUSD is a decentralized dollar stable asset by BitShares. It works similarly to a financial instrument that is called a contract for difference. http://bitshares.org/the-value-proposition-of-bitshares-part-ii-bitassets/
People who want to take a leveraged position on BitShares can short a BitAsset like BitUSD at the current exchange rate. The shorts are required to lock up $2 worth of BitShares as collateral for every BitUSD they short and they compete on how much interest they're willing to pay the longs.
When a long (Someone who wants 1 BitUSD) meets a short, a new fungible BitUSD is created.
(BitUSD is destroyed when shorts cover to reclaim there collateral.)
It sounds complicated, but buying BitUSD is very simple and straightforward for the end user but results in a dollar stable decentralized asset which is transparently backed by an average of 300% collateral and pays interest. It also means every BitUSD creates a lot of demand for BitShares
Disclosure: I own BitShares, so I'm biased for it.
I really think decentralized currency stable assets will transform the fortunes of crypto & the uptrend will resume once they gain adoption for the reasons described in my earlier post.