It's swinging now because it is still in price discovery mode. Whether it is going to be $1 or $1,000,000 one day it's going to reach equilibrium.
+1 If you look at the statistics you will see that the amount of BTC traded today on exchanges is measured in 10's of thousands. If you look at the economic transaction side of BTC you see it is measured in millions of BTC. The currency side is alive and thriving.
http://bitcoincharts.com/bitcoin/