Price Volatility: Unlike traditional currencies, such as the U.S. Dollar, which maintain relatively stable values, Bitcoin's price can change rapidly. For example, on November 5, Bitcoin was valued at $69,000. On December 5, its price fluctuated between $93,000 and $100,000.
Need for Stability Both buyers and sellers require a stable currency for daily transactions, something Bitcoin currently lacks. Imagine buying a computer with .00005 Bitcoin, and a day later, due to Bitcoin's price volatility, you could have bought 2 computers with the same amount of Bitcoin. Or, it could buy none. This makes it difficult to rely on Bitcoin for transactions.
Inflation Protection vs. Volatility: While Bitcoin's fixed supply protects against inflation, its price volatility offsets this advantage.
Stablecoins as Alternatives: Stablecoins, cryptocurrencies that are linked to assets like the U.S. Dollar, offer more stability for transactions. For example, Tether (USDT) maintains a value of $1 per coin, providing the reliability consumers and businesses need.
Bitcoin's Role: Due to its price swings, Bitcoin currently is more suitable as an investment than a direct cash substitute.
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