In
"The Denationalization of Money",
Friedrich A. Hayek says that private monies should be allowed to exist and that the one with the most stable value would be most likely to win.
In defense of Bitcoin, many suggest that the frequent, large price inflations and deflations are preferred over a currency with stable value.
Was F.A.Hayek wrong?
Side note: he also says that indexation is not a substitute for price stable money.
Value is never a stable thing, since supply and demand are changing all the time, stable value is just a wishful thinking. People look at the price label and feel that the price does not change, call that stability, but that is because the value of fiat money and those goods are all dropping at the same speed
Current large price swing of bitcoin is partly caused by extremely low liquidity due to low value, and partly due to large advances in mining technology. After the advance in mining technology has stabilized at more predictable speed, then price volatility will drop