Medium of exchange or Strategic reserve for Bitcoin.

[Darker45]

Due to its design, I'm afraid Bitcoin can't avoid being treated as a strategic reserve. In the first place, it's decentralized. It doesn't have counterparty risk. Moreover, its supply is fixed. It's, therefore, an attractive asset to be used as a strategic reserve.

However, it doesn't necessarily mean that if it's being utilized as a strategic reserve, it won't anymore function effectively as a medium of exchange, nor does it mean that it won't shoot up again.

I guess what lessens Bitcoin's volatility isn't necessarily how it's perceived or it's used but its level of adoption. Even if Bitcoin is used as a strategic reserve, for as long as the adoption is much wider, it would cease to be as volatile as today. The price won't anymore nosedive due to the decision of one institutional owner.

[BlackHatCoiner]

But Fiat would always look like a dollar today is same tomorrow because many don't focus on the real cost.

Because the US dollar has a ton more liquidity and it is completely normalized by the world. If instead of fiat, we had a bitcoin standard, you wouldn't notice deflation over short time periods either.

The volatility of bitcoin is completely justified for a total market cap of only $2 trillion. The US dollar has more than triple the entire market cap of bitcoin as a daily trading volume alone, and is backed by nearly every State of the world as every nation is a bagholder of US dollars.

[SeriouslyGiveaway]

Because the US dollar has a ton more liquidity and it is completely normalized by the world. If instead of fiat, we had a bitcoin standard, you wouldn't notice deflation over short time periods either.

The volatility of bitcoin is completely justified for a total market cap of only $2 trillion. The US dollar has more than triple the entire market cap of bitcoin as a daily trading volume alone, and is backed by nearly every State of the world as every nation is a bagholder of US dollars.

The Declining Purchasing Power of the U.S. Dollar
The USA national debt continues its rise with time and that is very big red flag for more effects on purchasing power of US. Dollar.
The USA debt clock.

Not only the USA, other nations globally have similar issues with their national fiat currencies from inflation rates to declining purchasing power. Bitcoin was created by Satoshi Nakamoto not to fix governments or fiat currencies, just to give people globally a chance of moving away from traditional bank systems, have their own Bitcoin banks, avoid inflation or at least reduce its effects on their wealth by saving their money in bitcoin.