Posted by Bitcoin Basics

Bitcoin's major drawback compared to other currencies is its volatility.  The Dollar and other currencies have central committees working hard to keep the valuations stable, with roughly a 2% per year inflation rate.  Bitcoin has no such entity and it is not designed with this feature.  Hence, the exchange rate of bitcoin fluxates widely as market demand increases and decreases.  There are organizations, such as BitPay, who will transact in Bitocin and provide a cash deposit at the current price so that volatility risk is avoided.