In fact, all currency is unstable. But to a varying decree. Once crypto has grown bigger than its current 1993-Internet-like state, a form of price stability can be expected that matches bigger fiat currencies. At much higher prices of course.
In fact, Bitcoin volatility right now can be regarded as less than some fiat currency brothers. Of course, these fiat brothers are the worst in town at the moment but it proofs that fiat currencies are not necessarily stable either. When looking at day to day fluctuations, Bitcoin often has more stable days than major currencies. It is all about scale.
I think Bitcoin has a big chance of becoming the premier ‘numeraire’:
http://www.gata.org/node/8303Who had thought that a few lines of code would compete with (the currencies of) the world’s empires?
I am enjoying every minute of the ride