The only way to get people to stop worrying and shying away from Bitcoin, is to banish the volatility aspet of it, naturally.
I also think that for the masses and the government to acknowledge Bitcoin, it needs to get rid of its high volatility. I know it will be gone one day but I think it will take long years of waiting for the price of Bitcoin to stablize. I guess it will happen when the last coin is mined or when majority of the population are using Bitcoin.