EDIT: The reason I say BTC will always be volatile; I consider $2,000 USD swings volatile. Yet, the price of BTC is so high, those of us with holdings of BTC in whole numbers and not decimal points will not be as concerned about the volatility. Those with decimal points would be more concerned. Those with decimal points would consider $2,000 USD swings as volatile while those with multiple whole numbers will not view it as very volatile.
I think that you lose me here, too, because less volatile and less manipulatable goes throughout, and I think maybe that either you are thinking about this a bit differently from me, or you are assuming a higher level of volatility.
If you hold 50BTC or something like that, and those BTC are worth $20million.. but maybe as we discussed earlier, the value of your total portfolio may fluctuate by $100k in a day, but the fluctuation of the value of the portfolio of someone holding $20k in BTC may only fluctuate by $100... It's the same volatility as a percentage but may be reasonably manageable for someone who is holding a lower value of BTC, and yeah that's not really taking into account the various ways that a person may chose to diversify, if he thinks that volatility is too risky.
As for someone with $20K in BTC fluctuating $100; lets have a look:
BTC worth $411,764 each with a $7,000,000,000,000 market cap on 17,000,000 BTC in circulation.
$20,000 USD in BTC at that price would be 0.04857151.
If the price dropped $2,000 in one day from $411,764 to $409,764, they would now have $19,902.86 USD worth of BTC. WHY? Cause they still have the same 0.04857151 BTC. It's just that the BTC is worth less here.
I see what you mean now by a loss of $100 in a day for this individual. I suppose it depends on the individual as to whether this is acceptable to them and is considered too volatile for them. Some people [Like my wife] can be quite thrifty. That's a good thing in my case though.