It sounds like you all feel like volatility is the thing keeping Bitcoin from becoming the currency that it was designed to be. That is a compelling argument.
Question: Would products and services being priced in Bitcoin reduce the volatility?
That depends. Will that price be a fixed BTC amount for a longer period of time or will the price change in real-time in comparison to fiat?
Here is the problem with BTC being a currency. Let's say you earn $2000 a month but you are paid in BTC. For simplicity, lets say that is 0.12 BTC.
It's great and you are happy when the purchasing power of your coins go up short-term and you can buy more for those coins. You are less happy when you notice that your purchasing power is 10% less in just 24/48 hours. And with Bitcoin, that can happen in both directions. That wouldn't be a problem if all goods and services were represented in a fixed BTC amount. You wouldn't care. But they aren't. I don't see them becoming priced in BTC in the foreseeable future. If your financial situation is such that those -10% are a huge burden to you or your family, who in his right mind would want to do that and be hungry for the last 5 days of the month until the next paycheck arrives?
If everyone prices everything in BTC and only thought in BTC terms with no reference to fiat values, such an economy would work. It's not going to work if the stuff I normally buy become significantly more expensive over night while the salary I earned lost the same amount in purchasing power.
franky1 talks about efficient mining being $15k at the moment. Taking that into consideration, the development of technology won't and isn't working in Bitcoin's favor. Why? Because more efficient miners will be developed in the future. They will have a better hash rate but require less electricity. Unless electricity and ASIC prices go up, miners will profit selling their coins cheaper. So, that fair value could drop to $12k, $10k, maybe $5k eventually.
