Will the volatility of bitcoin ever end?
The increase of its users will keep bitcoin's price going up. However, because supply and demand is controlled by human perceptions and emotions, after a huge boom in price it will always come a bust. Every overshooting of the price will be followed by a general perception that the price increased too fast and, consequently, by a drop.
For volatility to end, it would be necessary a general adoption of bitcoin that would limit further increases for lack of enough new persons to make a substantial difference in demand. But since the numbers of bitcoin are limited, that would also require or a stagnant GDP or a fractional reserve system based on bitcoin that would allow its banking numbers to artificially increase side by side with GDP. That won't happen for years. Volatility is here to stay for long.
I think this is a reasonable assessment. I agree that the volatility isn't going anywhere anytime soon. I think you're right that it will have to get to the point where the emotions of the crowd are not the driving factor on upswings or sell offs.
Volatility is going to be a big issue I think and I'm not actually sure if it will ever end.