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?
I think yes it cannot be because whenever that the price will fall down it is hard to buy things that we wanted to buy because if our money is just right for yhe price and then all of a sudden you it falls then you will wait for it to rise again before you can buy the thing you wanted. So it is much better to stay that way because in that case they can live peacefully without people complaining about that happening.
This is true. But one of the factors that makes the crypto volatile is that the people who uses it. There are panic sellers and such. These people affected the crypto so much. If we dig deeper, fiat did not really have a change because people are consistently using it. Therefore it is stable because people needs it. If thats the case, then if it happens to the bitcoin then it will surely not be volatile in nature.