I was reading some of the replies in of @mr_jk's thread when he asked what will happen if bitcoin's price became stable?
The replies were unexpected hehehe. Much of them argued why or how can bitcoin be stable? This makes me ask the question do much of the holders of bitcoin want the price to be stable or do they really want it be volatile? I ask this because stability makes bitcoin become a good store of value and medium of exchange. Volatility makes it good for trading and speculation.
I'm afraid you have already made the point very clearly why people want Bitcoin price to be stable or not. The price stability actually dermines the nature of Bitcoin. If the price is highly volatile as it has been, Bitcoin is indisputably an ideal investment with high return or loss. People are crazy about any fluctuation and the whole market is measured by it in many cases. On the contrary, if prices are stable like an iron, the competitive advantage of Bitcoin is the secured value, acting like an anchor of assets. Like you said, with stability, Bitcoin will become a medium of exchange and I assume people will buy it to keep its value like gold.