How would you solve volatility problems in new currencies? Backing it with something?
The volatility can be looked from the angle of regulation or control. This is one thing that will help to stable the coin. And when it goes up , it would still be within reach.
IF the volatility stops and the coin will be stable, then it is not bitcoin anymore.
This is one of the reasons why bitcoin created by Satoshi Nakamoto, this person wants to give the power to the people all over the world to dictate the price of the coin or currency and will never be stable and controlled by anyone especially banks and government.