Liquidity I thought should enable volatility as it means vast amounts of available currency to sell is a possibility.    What I really see as the solution is greater business done in BTC regularly, so proper trade routes or something similar which is where speculation would be setup as arbitrage in that regular flow rather then people sitting on exchanges second guessing each other.   What happens with too much speculation is whispers become echos affecting the market just on perceptions rather then actual demand and supply from usage by individuals.     Put simply I rate the ratio of users to speculators as more important then a false brake of a central bank type body