Gold has been around for thousands of years, and a lot of the reason why countries stopped using it as a currency was that it was too volatile. There is no reason to believe that bitcoins will be different. I realize that you have to believe what you do because the alternative is to admit that bitcoins (and gold) can never work well as a currency, so I'll stop arguing now.

I did not say that the volatility can be predicted, just that it will always be there.