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.
Though bitcoin's price is somehow volatile, the concept that lies within the Bitcoin protocol is advantageous compared to a centralized national currency. Give bitcoin time to see adoption, stability will soon follow. But we cannot deny the fact that because of the lack of users, bitcoin tends to be more of as an investment vehicle used by people who has the $$$ in order to get a hefty profit.