Like most investments there will be a trade-off of risks vs returns but both currencies will in the long run, be poor investments compared to income generating assets tied to real production.
I don't think gold is the right medium for the singularity because it is not easy to obtain and subdivide. It needs to be in the the vicinity of choosing the inflated coin on one hand, and the more valuable coin on the right.
Perhaps it's this trait that will keep Bitcoin volatile? Because it's easy to go in and out of it, volatility will remain high?
Intrinsic value discussion aside (which is its own discussion worth having), I would certainly like to keep more of my money in gold vs my local currency if gold were easy to get and keep. Peter Schiff says goldmoney.com does this, but I'm not interested in owning a certificate.
You bring up a good point though. The closer I imagine ourselves being at the event horizon, the fuzzier the details become. For example, I don't know what "stable enough" is exactly. I guess the question is now, will it ever get close enough to go past the event horizon?
I don't think crypto-currencies will ever get that popular though. It would require governments to be on board and foolishly march towards the 1929 thing again. But you never know, as they say, history rhymes.