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?
Thats is wrong argument. Each product price is determined by supply and demand. People need products and industries produce the product in specified scale for those people, the the comparison between the number of product that people need and the number of product that provided by industries will determine the price. You can know more about it if you learn about Microeconomy. But, bitcoin with its volatility today can't become the main currency that replace fiat money. Because the price is still unstable, it can be dangerous for the country's economy. But the price of it will rise because the bitcoin increasing demand is growing. Bitcoin price in the future will be more stable but still tend to rise at that time I am sure that bitcoin will be widely used by people around the world.