Consider the scenario where I don't already hold bitcoins, but would use them for a transaction. It is very possible that by the time I obtain them, then go to

Consider the scenario where I don't already hold bitcoins, but would use them for a transaction. It is very possible that by the time I obtain them, then go to make a transaction an hour later, that I could lose over 10% due to fluctuations. It's not that I physically can't, its that I would be stupid to rely on bitcoin as an exchange of value when there are other options with less volatility. Yes bitcoin and cryptocurrencies are in their infancy and inherently volatile at this stage, but the volatility until now has been lower such that we are willing to accept losing 1-2% in a transaction for the perceived value of transacting in bitcoin over a fiat currency. With volatility at these levels, that value proposition goes out the window. Adoption of a currency is always a function of how stable it is as a store of value, and wider adoption is what sustains a higher value. Speculation is not able to sustain a higher intrinsic store of value, hence my hypothesis.