The core idea of (modern) fiat currencies is to provide a stable exchange media which is required for every stable economy. This is done by having an independent organization which controls the amount of circulating money to stabilize it. While it's still possible to speculate with fiat currencies, it's less profitable because of the artificial stabilization through a central bank which often goes against the market. As the result the currency is much more stable which makes trading etc much more predictable if done with a fiat currency. Which in turn leads to economic growth.
With Bitcoin we see what happens if currencies are subject to heavy speculation: The value is changing rapidly, and this makes trading and any kind of accumulation (which is necessary if someone plans bigger investments) with the currency very risky. And this will probably prevent the use of Bitcoin for it's primary use: Trading. People want to trade and people want to speculate. But only very rarely they want to do both at the same time with the same thing. If you have to take currency fluctuations into account to find the right time to buy things, this isn't what most people are willing to accept. As a result they will probably stay at some fiat currency for trading and use Bitcoin for speculative purposes only - which may kill Bitcoin in the end.
Any idea how to overcome this problem?
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