in fact, bitcoin is not that volatile relative to its small market cap. Bitcoin is a value transfer system, so the price of 1 BTC is fundamentally a function of how much value flows though the network and speculation of the future value of the flow. And when the network grows bigger, the changes in the flow will be smaller and less uncertain.
A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies:
http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.
Penny stocks are much more volatile. What is happening to Bitcoin is 100% normal when you compare it to new, small companies. Once a company like that makes an announcement that they're reaching a breakthrough their shares go up and when the competition spreads FUD they go down.
I'm sure it will decrease with time.
We can already see it starting to decrease with dips getting much shallower.
If anything, this doesn't look very convincing
I'm curious where you see "dips getting much shallower". Just a few weeks ago the price went down below 4,000 dollars per coin, while yesterday Bitcoin seems to have made a new ATH at over 6,300 dollars. This is an increase of more than 50%, just in case. I don't know about you, but personally, I wouldn't call that as dips getting shallower, let alone much shallower. So what is the basis for your claims that Bitcoin price is becoming more stable? I'm really interested in hearing that. Maybe, I don't know something which you do
You're looking at USD value and that's why you can't see it. You should start looking at percents because it's all in the proportions not the amount of USD lost.
You need to go back a couple years and compare to what's going on now. In early 2014 it lost 800$ on the average in 3 months and reached a low of $100 on some exchanges. This was a loss of over 80% of value in less than 4 months, so yes I think that losing 30% of value right after a short spike is nothing compared to a gradual loss of 80%.
You are just trying to distort the facts so they better fit your idea
First of all, I think you should check the price charts for yourself. If you do that, you will see that Bitcoin had been declining from its 2013 highs for over year with a minimum of around 180 dollars in February, 2015. So I don't think you could easily compare this decline with the volatility we see today, where prices crash and spike dozens of percentages within just a few days. Further, you might have missed that part of my post where I talk specifically about percentages, where I say that the plunge from 6,000 down to below 4,000 and subsequent growth to over 6,000 dollars (now above 7,000) is over 50%, just in case (though it depends on what you take as the base). And last but certainly not least, there is a good theoretical explanation that with the price growth we will see an ever increasing growth in volatility. Yes, in percentages, not just in absolute terms, mind you