I'm doubtful about BitCoin becoming less volatile in the future. Perhaps in the very long term, but not within the next few years.
At the moment, merchants who accept bitcoin set prices natively in USD, and convert bitcoin to USD immediately (or risk currency losses). Bitcoin will become more stable once merchants set prices natively in BTC, regardless of the USD exchange rate. This is the case for example in Europe, where the EUR/USD fluctuations have little effect on the everyday purchasing power. This can realistically happen only once the majority of their expenses (salaries, suppliers, etc.) are also priced natively in BTC. But given that only USD is legal tender by law in the U.S., employees, suppliers and IRS can always refuse your bitcoin, and make the exchange rate an issue.
Another problem in at least the next few years is that a small group of early miners of Bitcoin hold the majority of the money supply. Until they have cashed out, they have the ability to flood the exchange with far more supply than there is demand from new users, making the long-term storage value risky.
At the moment, merchants who accept bitcoin set prices natively in USD, and convert bitcoin to USD immediately (or risk currency losses). Bitcoin will become more stable once merchants set prices natively in BTC, regardless of the USD exchange rate. This is the case for example in Europe, where the EUR/USD fluctuations have little effect on the everyday purchasing power. This can realistically happen only once the majority of their expenses (salaries, suppliers, etc.) are also priced natively in BTC. But given that only USD is legal tender by law in the U.S., employees, suppliers and IRS can always refuse your bitcoin, and make the exchange rate an issue.
Another problem in at least the next few years is that a small group of early miners of Bitcoin hold the majority of the money supply. Until they have cashed out, they have the ability to flood the exchange with far more supply than there is demand from new users, making the long-term storage value risky.