Volatility is reducing however. As the scale increases and the exact role that a currency will end up playing in the world becomes clear, so does its market cap. Amazon or google will never rapidly grow 100x in a few years again, and whichever crypto becomes the world reserve will have the same reduction in volatility as it scales.
I see cryptocurrency prices largely driven by speculation. There is no underlying value that justifies the price. This means that the people purchasing cryptocurrencies today are relying on someone else purchasing it at a higher price tomorrow in order to make a profit. I might have used the term MLM incorrectly when what I meant was pyramid scheme.
You are now using the term 'pyramid scheme' incorrectly.
Out of curiosity, do you consider other objects of speculation, including stocks, bonds, futures, derivatives, commodities and real estate, to be 'pyramid schemes'?
(Obviously people are also using them for speculation, but that doesn't mean that's the ONLY current use case.)
It has not shattered any belief in traditional currencies or governments for me. In fact, it has made me realize their value. People are just using it for speculation which makes it feel a lot more like a multi-level marketing scheme than a currency.