BTC volatility is nothing compared to the bloodbath that just occurred in CHF:

http://www.bloomberg.com/quote/CHFUSD:CUR

Yeah, it's "only" 20-30% move (depending on currency cross) but in highly leveraged FX markets even 1% can wipe people out.

Personally I never cared about Bitcoin "value". In my mind it is a great medium of settlement and not a store of value (which it might also be; given long enough outlook).

First we need to grow the Bitcoin economy to a decent size and then we can talk about "price stability". Transaction volume at the moment grows rather slowly. The rest is just speculators.