The price now is about right, in my opinion. And maybe it will keep appreciating at something like an order of magnitude per year for a while. I can't see a case for dramatic volatility increase.
The reason is this: Most people - the vast, vast majority - are stupid and rightly lack confidence in their own abilities. It is too dangerous to personally secure your coins for the average person. Once it becomes possible to buy in without the risk of losing your money through negligence or hardware error, such as Circle or the ETF or something of that nature, it will become possible for far more people to hop on the wagon than currently.I see it more as an application of the 100th monkey effect
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The hundredth monkey effect is a studied phenomenon[1] in which a new behavior or idea is claimed to spread rapidly by unexplained means from one group to all related groups once a critical number of members of one group exhibit the new behavior or acknowledge the new idea.
http://en.wikipedia.org/wiki/Hundredth_monkey_effectThe notion of tipping point as described by Malcom Gladwell also applies.
Finally, from an economic standpoint, the prospect of currency speculative attacks is a very likely scenario http://nakamotoinstitute.org/mempool/speculative-attack/
Of course at the bottom of all of this is the inherent greed in humans. If it continues appreciating an order of magnitude per year for only one or two more year then the "trend" will be too strong for even the most common man to ignore.
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