By your logic if I exchange dollars for euros to spend on a vacation somewhere that means the dollar has failed ?
Now imagine you get paid in bitcoin, save every month for a holiday or a high value purchase. When the time comes to make the purchase you find out that your savings are worth less than 10%. How does it feel using bitcoin?
I tried to use bitcoin(as a merchant) but due its volatility it makes no sense to use it(as merchant or buyer).
Furthermore, good currency should encourage investment (into things) which means it needs to be (slightly) deflationary (to introduce a cost to not investing into production). Otherwise you get into a paradoxical/toxic situation where NOT producing useful things becomes financially advantageous.