Most of the currencies in the world are fairly volatile, and most are more volatile than Bitcoin. The USD has even had a quite volatile last 12 months. Therefore, yes you can absolutely use a fairly volatile currency as a medium of exchange.
Yeah my country's currency is an example of such volatility
But it's not noticeable since like I stated before in majority perception the currency nominal value remains unchanged
The Iran currency even imitated how shitcoins work.
Well of course it is, and that is how it is supposed to be given the details of how perceptions of both cases come to be. How does an average person get familiar with their own currency growing up? It is money that you have to use, money that circulates, prices of things are in that currency and that is all that you know. You spend it, you use it, and you never think about inflation, or even exchange rates which you may only sometimes encounter if you need to get other currencies. Naturally you are basically programmed to ignore it unless you are an exceptional case. How do most people encounter Bitcoin? So many topics and so much talk about the price (the most boring and useless part of Bitcoin), so much focus on alleged cycles, trading, leverage. Therefore, most people have made themselves obsessed with this. How many fiat users look at the exchange rate daily or several times per day compared to Bitcoin or crypto users? Very few in %.
My question was supposed to be what would have a bigger impact on price
Medium of exchange or store of value
When Gold was the money the price didn't really go up like we see today since prices were measured in Gold
It showed in the prices of goods
But it started looking like it's quite volatile when it became of store of value.
The demand works stronger in cases of store of value for something that has a limited supply like Bitcoin, or a somewhat constrained supply like gold. A medium of exchange works best at stable prices and since very few value or want it for other reasons it tends to have a more stable price with all things being equal. The primary reason why fiat is unstable is due to the government manipulations and interventions (and other decisions). If they left it in peace (but they won't since it is profitable to abuse it), it would have much lower volatility.
