Bitcoin's Price

"A currency must provide reasonable price stability in addition to serving as a medium of exchange, a store of value, and a unit of account. Bitcoin's exchange rate moved dramatically during 2013 and 2014, making ordinary purchases difficult to price and making it hard for businesses to hedge against losses. Professor David Yermack therefore argued that bitcoin was better understood as a commodity than as a currency because its price had little predictable relationship with major currencies or gold."