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I believe you just moved slightly away from the subject. We are discussing price volatility here and not profit making strategies. I am of the opinion that somehow, someday in the near or far future the price of bitcoin will stabilize and it may not be a good investment option at that point but a good means of preserving assets.
Even if in the future the price of bitcoin becomes more stable - but bitcoin remains a good choice for investment or as a hedge. As long as investors can still generate returns from bitcoin and traders can still make a profit - then as long as bitcoin will have enthusiasts. I agree that maybe the returns are no longer as big as before - but bitcoin will still be a good choice for most of them. Low profitability will not make bitcoin a bad choice as an investment asset - even fiat tends to give lower returns if you have a deposit in the bank.