I just don't see how bitcoin could become a major currency to buy and sell goods without the volatility issue being mitigated first. This is why I think the 400 billion market cap should come first, and afterwards the whole currency shabang.
Doesn't a lot of world trade happen in USD$ as it's the world's reserve currency? It is volatile no? (admittedly not to the same extent)
Weren't you only yesterday saying that you don't want to trade on bitstamp because of the volitility between EUR/USD?
Point is.. trade still happens.. and it will (it has to!) volatillity or not. This is something people in business, especially in this globalised world know about, and generally dislike.
By the time a payment has cleared they have either gained some extra or lost a little extra. This is life.
What if two agents on different sides of the world set their price in btc, and worked in btc. No waiting. No exchange fees, No credit card or banking fees.
What little fluctuation occured, would be offset by the gains of almost zero fees (above).
It is often argued that aas bitcoin gains market share and acceptance that such volatility will even itself out, leading to a more stable value in time.
This further negates the volitility argument.
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Thanks MtGox
