Quote from: Manticore on April 24, 2013, 06:18:17 PM

Bitcoin is genius and would be the cheapest, fastest way to transmit value if it wasn't so volatile. The high currency exchange risk means that only investors can currently benefit from Bitcoin. If you are truly a Bitcoin aficionado, you should not want it shoot up to $1000 anytime soon.

Most major economists overwhelmingly agree.

http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_8qRwhHaLc7b5Sp7

I would like to prove them wrong.....but until/if we can make it through the press release-hoarding-speculation bubble, there isn't much hope. Bitcoin is an 'investment' based on the belief of increasing transactions in the future so investors buy and hold. This kills its usefulness in transactions.

Because of volatility, BitPay is required by 99.9% of merchants at a 1% fee. The spread to purchase is usually 0.5% - 1% (2-5% or more during periods of volatility) and has to be factored into the BitPay purchase cost. Foreign exchange risk (currency fluctuation) assumed the by purchaser is extraordinarily high (drop from $166 to $153 in minutes is equivalent to an almost 8% fee + spread & BitPay fee).

Without the extreme volatility, some businesses might be more inclined to assume foreign exchange risk without Bitpay. The spread would stay low. And the foreign exchange risk for purchasers would be much lower. It would become the cheapest, fastest money solution.