being volatile is not the problem and it can not be considered a "risk" in my opinion. take a look at bitcoin ,it has been volatile for all its life but it still is a very good currency and/or investment. the reason is because volatility is the product of having a small market on exchanges.
the problem is when volatility is not because of smallness of the market but it is because of manipulation. for example no matter how much money goes into altcoins they will remain highly risky because their volatility is product of pure manipulation which people call pump and dump.
My opinion for that is people wants something a less risky but they didn't know that the less risky it is, the less profits there is for them, as a human nature, it is natural to be scared, we have instinct to trust or not to trust sometimes, most likely, people wants fiat because it is "safe" for them (how ironic), but the truth is, there is no such thing as safe, dangers and risks are everywhere.
We both can't understand each other's perspective because the other side is not listening or paying attention because they are insisting that fiat is more better to use, all we can see is a tornado of opinions.