Look at it another way, it is fiat that is volatile.
Exactly. It's all a question of the point of reference.
If you believe that Bitcoin will become a dominant world currency with most goods and services priced in Bitcoin then Bitcoin is the right reference point.
In this case, the thing you call "volatility" today will then be called price inflation / deflation...
Even if the USD is your point of reference, you will experience guaranteed loss of purchasing power by holding this fiat money.
ya.ya.yo!
If you hold USD long enough you will lose purchasing power but if you hold it and what you wanted to buy crash you will experience an increase of purchasing power.
Yes, but I was referring to the longterm case.
All "investment" is speculative to some degree - meaning that it involves uncertainty, because not all price movements can be predicted (or to word it better: most price movements can't be predicted...). So investing into Bitcoin involves "volatility" risk.
But if you invest into USD (or holding your investment) you are not only exposed to volatility risk, you're exposed to the additional systemic risk of inflationary devaluation. So with Bitcoin you're exposed to volatility, but with USD you're exposed to volatility within a declining value trend.
ya.ya.yo!.
Nobody knows exactly how and most importantly when a market will move but when you have central banks thinking you can solve problems and create wealth by creating money, you can expect them to do just that.
Therefore you can expect Bitcoin and Gold to increase in nominal terms and even become even more valuable compared to other goods since they are a competitor of fiat currencies.
