Mr Darthcoin, we live in a Fiat-run world while trying to make it a Bitcoin-run world. Imagine where businesses use Bitcoin as the underlying asset transferred when they make Fiat transactions. This is what the Fiat channel proposes.

It indirectly sews Bitcoin into the architecture of traditional finance, then suddenly everyone prefers to measure value directly in Sats and not in Fiat because over time less sats is exchanged for the same quantity of fiat.

Volatility against the prevalent unit of account (fiat) is an inherent feature of Bitcoin as a free market money. It will wane and reduce over time with more adoption and daily application in trade.

Using Bitcoin directly for trade and for value exchange, especially in a fiat-run world, will often require re-conversion into Fiat which ultimately renders Bitcoin as just a medium of storage of value, a value measured in fiat, not in Sats.

But having Bitcoin as the base asset for transferring fiat value means more people use Bitcoin, albeit indirectly making more people learn about the Lightning network, ask more questions, and hence learn about opting out.