I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.
What do you think about this argument?
By definition, volatility means 'characterized by or subject to rapid or unexpected change' (Merriam Webster Dictionary).
All traded Fiats are by this definition volatile. And they have continued to exist as national currencies and acceptable money. What Klaus W. Wellershoff should have talked about is the 'classical degree of volatility' of a currency. Is it high, is it average or is it low? Currencies with low and average volatility are relatively stable over time. When you plot the value of currencies over time, you will see spikes and these spikes are 'rapid and unexpected changes' aka volatility.
Note that CURRENCY TRADERS CHERISH VOLATILITY & there are numerous reasons as pointed out on this forum in another thread.
https://bitcointalk.org/index.php?topic=4394710.msg39139333#msg39139333 A digital currency can be designed to be both STABLE to satisfy & protect the daily utility of ordinary users and moderately VOLATILE to satisfy the appetite of currency traders.