Difficult, but not impossible. You can already find circular economies sprinkled around places where fiat has met its ultimate demise.

I don’t think these people care to compare Bitcoin with their failed state issued colored paper anymore.

So again, volatility against what? Dollar price is volatile against gold, but not many people put it that way… somehow dollar is still seen as a a stable currency.

Without state intervention, fiat currencies would be reacting to market forces just like Bitcoin. This kind of perceived stability is most likely only possible under coercion.