Because Bitcoin has a limited supply, the only way to lessen volatility is for the market cap to rise. Because there is no effect on the market if there is a large marketcap when someone is going to sell their altcoins/Bitcoins. I believe that mass adoption and regulation will contribute significantly to the expansion of marketcap since it can bring more investors to the market.
This is one of the ways, but not the only one.
Another way to reduce volatility is to distribute bitcoin among many more users. If you have 20 million bitcoin owned by 1 million people, the volatility is going to be much higher than in a case of the same number being owned by 3 million people.
Based on what I understand from Satoshi's previous statements about why he did not wish to instantly promote the use of Bitcoin to everyone, I believe that someone will keep a large amount of Bitcoin due to hype. If we go back in time, the authorities blocked Wikileaks from transacting money through their website, thus utilizing Bitcoin is the best way to continue some exchange of goods, which Satoshi does not agree with because he wants to strengthen the Bitcoin. So, if Satoshi agrees with RHorning, it is possible that the Bitcoin price is quite volatile today since many individuals own a lot of Bitcoin and can dump it.
Basically, bring it on. Let's encourage Wikileaks to use Bitcoins and I'm willing to face any risk or fallout from that act.
No, don't "bring it on".
The project needs to grow gradually so the software can be strengthened along the way.
I make this appeal to WikiLeaks not to try to use Bitcoin. Bitcoin is a small beta community in its infancy. You would not stand to get more than pocket change, and the heat you would bring would likely destroy us at this stage.