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.
This is very unlikely in my opinion, we cannot deny that it is the volatility of bitcoin that attracts people to bitcoin and the market and not the technology behind it, it has but very few people care about technology. What everyone wants here is profit.
Once bitcoin becomes as stable as gold it is today it is very likely that countries will gradually adopt it but we will also lose a large number of bitcoin users as it is no longer profitable for them.