Decentralization and stability of price in a short period of time is impossible due the very fundamentals of a free unregulated market such as Bitcoin's. The only way Bitcoin can reach stability is when there is so many people using it that a whale dumping tons of coin would be like pissing on a sea of pee.
When Bitcoin reaches mainstream usage it will naturally stop being so volatile. I don't believe in alternatives to Bitcoin, everything that's needed Bitcoin has it.
I personalty believe Bitcoin stabilizes in price when it equalizes the things traded with it. If that never happens, then it never will.
When a unit of labor perfectly trades for a pound of chicken or a gallon of gas, with no supply or demand imbalances caused by the currency itself, then that currency will be perfect.
That's probably an untenable goal, but whatever comes closest will win.
That's probably what Hayek was after. A larger pool of Bitcoin may help that happen, may not.
-C