How is volatility ever going to be reduced to make bitcoin a viable currency if people keep holding. Holding results in low market volume and thus greater volatility.
It seems like BTC will become Gold 2.0 rather than a currency.
Volatility will never go away for currency such as bitcoin.
Reaching consensus on price across all countries and various market participants just isn't possible.
The market works for bitcoin in the same way that any other market operates. The reason why the bitcoin market/price is not stable is because the market is not very liquid and the fact that ownership of most bitcoin is somewhat centralized, which means that when someone wants to start a new long position of sell some of their existing bitcoin they will experience a lot of slippate.