Bitcoin’s Volatility Limits Monetary Role, MUFG Bank’s Lee Hardman Argues

Bitcoin’s inherent volatility continues to reinforce its classification as a speculative asset rather than a stable, widely-accepted form of digital money, according to Lee Hardman, a Senior Currency Analyst at MUFG Bank. This assessment stems from limitations in its practical application for everyday transactions.

Bitcoin’s Practical Limitations

Hardman points out that despite increasing adoption, Bitcoin is not yet widely accepted for routine purchases. Even when accepted, the cryptocurrency faces challenges related to transaction speed and cost. During periods of high network congestion, transaction processing can be slow and fees can become prohibitively expensive, making it less convenient than traditional payment methods. Source

Volatility as a Barrier to Adoption

The extreme price fluctuations of Bitcoin further hinder its ability to function as a reliable monetary unit. Prices for goods and services are rarely denominated in Bitcoin due to this volatility, limiting its usefulness in everyday commerce. This volatility too undermines its potential as a stable store of value. Source

Current Market Position

As of February 17, 2026, Bitcoin was trading down 1.6% at $67,769, according to LSEG data. Source

Lee Hardman’s Expertise

Lee Hardman is a Senior Currency Analyst at MUFG Bank, specializing in foreign exchange research. He has published extensively on currency markets, including analysis of the impact of cryptocurrencies. MUFG Research. He also recently noted the Reserve Bank of New Zealand is widely expected to keep the Official Cash Rate unchanged. Mitrade. Hardman has analyzed the Australian Dollar’s performance, attributing its recent rise to the Reserve Bank of Australia’s tightening policies. VT Markets

Stablecoins as an Alternative

Hardman suggests that stablecoins may be better suited than Bitcoin to function as money, due to their inherent price stability. Source