I don't think that the strong majority of people that buy bitcoins have any idea of what they are actually doing or what the bitcoin protocol is. Under that ass

I don't think that the strong majority of people that buy bitcoins have any idea of what they are actually doing or what the bitcoin protocol is. Under that assumption it would seem that the price of bitcoin is dominated by "the other people are doing it" school of trading. This is typical, most numbers in the financial space just go up and down because some people are willing to put more money in their belief than others. The author pulls bitcoin out by one dimension of its pros and cons and then says it does unfavorably in that dimension. It was not designed to be stable in that dimension (price relative to currencies), therefore it isn't stable in that dimension. It never will be, unless central banks start pegging their currency to Bitcoin, or start pegging Bitcoin to their currency (which they could do if they wanted). Who else has the interest or capability in printing / destroying large amounts of fiat currency or ramping up / down large amounts of mining horsepower to balance out the volatile speculative nature of bitcoin? So until some force acts to provide stability in that dimension, and that force likely only being a large central bank, there will be no stability, only the fluctuations of speculation. Ultimately the question bitcoin is posing isn't should I store my money in Rubles or Bitcoins or leave it in my bank account, or in S&P's or USG Treasuries or etc.. It's should I conduct an electronic transaction in Bitcoins or Rubles or Visa USDs or Paypal USDs etc?