You don't need to have prices of goods stable in Bitcoin - they can be adjusted in real time vs a fixed value in dollars. You are not paid in Bitcoins anyway. Bitcoin is just a way of exchanging your dollars/something else to them and make payments online without fees. With bitcoin you can, in theory, get rid of an expensive credit card, for example.
But isn't what really matters whether Amazon turns around and uses those bitcoins as bitcoins or converts them to USD? What benefit would the average consumer get from turning their USD into bitcoin to spend on amazon?
And what does that do for the average person? Marginally cheaper prices? Does that offset the steep learning curve and the fact that you're effectively on your own if something goes wrong? Other players(or perhaps even Amazon themselves) can step in to fill that gap, but then you're back at where we are today. Noone has yet made a convincing argument for why bitcoin-as-a-currency will take off in any meaningful way beyond niche markets serving niche customers without the addendum that re-centralization will have to occur.
But more importantly, what matters is whether the manufacturers and distributors accept and use bitcoin amongst themselves all the way along the resource chain. If Amazon immediately turns around and converts the btc revenue to usd in order to pay for inventory, then what point is there in using btc in the first place? Right now it's a niche group of people using bitcoin to actually buy things(at their own expense at that), and without a doubt the retailer is immediately converting that revenue to usd.
Well if you want to create a new currency you have to start somewhere, don't you ? The bet of Bitcoin is ultimately that it will be stronger than the fiat currencies out there, and that in case the USD, Euro or other key means of exchange should fall, the Bitcoin could be a value of refuge which is both convertible in other currencies and usable to pay for stuff on the net (and maybe in real shops, one day).
I don't think you fully grasp that there is a limit in the supply of Bitcoin in the long term, and that is exactly the key differentiator vs fiat currencies printed when governments need to pay their debts, ad vitam eternam. Some people say it's because of this structure that Bitcoin will fail, but in the end that's the only reason that Bitcoin will actually thrive if it is successful.
None of that addresses any of my points. Yes of course there is a finite supply of bitcoin and thus it is inherently deflationary. That's a good thing for hoarders, and the current volatility is great for speculators. I'm not seeing any key advantages for the average consumer, not until they're paid in bitcoin and there are similar financial services as today. But then what has really changed?
