Bitcoin's volatility is not a symptom of its architecture, but a reflection of the collective knowledge of its future acceptance. Currently that knowledge is based on very volatile sources: how some senator feels about it this morning, which direction departments in the Chinese government are leaning. The issue is that proof-of-work is missing from society's end. As time goes on, laws, regulations and policies will start to form, people will challenge them, they will be reviewed and updated, they will be challenged again on different grounds, re-reviewed, and so on. Each of those confirmations will make it that much harder to change earlier confirmations. It won't matter anymore what some senator thinks this morning because she will have months of hard-work ahead of her before she can affect any change. It also doesn't matter if the rulings are positive or negative, just having them will add stability to Bitcoin at some value between $0.0001 to $100,000 per coin.