Volatility is just a function of how much value is already stored in bitcoins and how much value can be stored there. Currently there's so little value is stored in bitcoins that single billioner can raise price of bitcoins few times by going all in. Bitcoin will be much more stable if there will be at least few trillions of dollars stored in bitcoins. Look how little fiat curencies prices fluctuate. Same and lower levels are possible for bitcoins.