I think the volatility is a result of not having enough knowledge about bitcoin in general. I don't mean the technical part.
Nobody knows how many people use bitcoin, how many coins are already lost, or how the posession of bitcoin is distributed amongst the users.
So when you buy bitcoins, you rather guess what value it has.
When people see the price move on a larger scale, many tend to follow the trend because they get the feeling their guess was wrong.
They have no numbers that help them to reconstruct why they paid a certain amount for a coin. They only have the current situation and they act on it.
So I do not think you can controle volatility with crypto currencies.
 

The miners would have a real problem.
They would have to find another country with low electricity costs where they can set up their mining hardware again.
Moving the hardware into another country, that is nothing that could be made in a few days. If possible at all. With a ban of bitcoin, the hardware to do mining might get confiscated.
The missing hash power would trouble us all with much slower transaction times and higher fees.

I think that people who invest in altcoins are much more involved into crypto currencies than many of those who invest only in bitcoin.
Bitcoin investors are ordinary people. They do not look at the price every day, and they do not read the crypto news that often as well.
So FUD and other news don't affect them that much because they are not aware of the news.
The altcoin owners are more informed, that means they react faster.
I think that is the main reason why volatility in the altcoin area has become much higher than in the bitcoin field.
The recent news (although it was most likely fake) was bad, so we have a price decrease.

Investing your bitcoins only makes sense when you find an opportunity that gives you more profit than the growth of bitcoin price.
Last year this time we were at 600 dollars, now we are at 4200 dollars. That makes profit of 600%.
Good luck in finding a better investment method.

I am keeping my coins for my retirement.
I think of them as a bonus, a small investment that might be worth a lot at the time when I cash out.
That means as well I am a long term holder. So I do not care about price fluctuations.
Every now and then when a little extra money is available, I increase my coins with it.

I think we will see something like this happen every now and then again.
The bitcoin users who are dealing with crypto for some time now, they do not get affected by this kind of news anymore.
But the people new to bitcoin, they panic and sell.
FUD news will always have an affect on the people new to bitcoin.
Unfortunatelly that is something the creators of that news can count on and make profit from.

Hm, I don't know how else I should describe a hard fork with chain split than using the term controversy.
We already had one this year and heading to the next one soon.
So from my point of view, we have drama, we have contoversy, more than necessary.

That would be exactly the reaction FUD creators are counting on. People selling their coins because  of the news.
Personally I do not want to do them that favor and give them cheap coins on my costs.
I'm holding, and I hope most others will do so too!

Money is important, to a certain degree.
Sometimes you even have to do stuff you don't like, just in order to get enought to make your living.
But above all? I don't think so. There are lines thet should not be crossed.
And too much money is not good for the character as well. At least an old saying tells so.

I can imagine as well that a government that bans bitcoin simply does not understand it.
There are many articles and news about bitcoin that claim it's a ponzi.
When the members of a government read too many of those articles, they might get the impression that would be true.
So they ban bitcoin in order to protect their citizens.
Then the ban would be an act of pure misinformation.

Personally I would hold the bitcoin.
Right now I have not much need of money, so all I can do is invest it. And because bitcoin is already a very good investment, I would stick to the coin I got.
Of course it would be different if I needed money. Then nothing speaks against selling the coin. After all it was a money gift. And what else is money good for than to spend it when it is needed?

When BCH forked, they had about 5% of the hashing power (I think, don't know the exact number anymore).
Segwit2x has about 90% at the moment.
F2Pool said to withdraw the support, but hey still flag it. And because they still flag the support we must assume they will keep supporting.
When you just look at those numbers, everything points to the conclusion that this time the new chain will be the stronger one. By far.

Personally I thought that ETH would take a hit, even long term.
If my informations are right, ETH was the main currency that fueld the ICOs.
But the quick recovery of ETH has proven me wrong, at least so far.
I suppose the possibility that the ban is just temporarily has calmed the investors down
Or maybe there are some details how things are connected that I am still not aware of.

I think one good reason for crypto currencies is that everybody can participate.
Banks can close your accounts, or not even take you in the first place.
Crypto currencies are free to join for everybody!
They give a lot of people the possibility to participate in so many areas of life that would be closed for them if they had no crypto currencies.

When you have a regulated environment I think ICOs are a business like any other. Everybody must decide for himself if he wants to invest his money.
But the way it was, ICOs were used to scamm the people in order to get their money.
At the moment I am not aware that you would find anywhere in the world a regulated environment for ICOs.
And because I do not think a country would want scamming ICOs for its citizens, I don't think another country will take advantage of the ban in China.
I think as well that China will be the first country to set up regulations, and those regulations will be adopted by other countries.

I can give two advices:
Work carefully. Especially when you make transactions.
That means controle them twice before you send it. Make sure that you have the correct address, and not fees mixed up with the transaction amount.

The secon advice: Use your brain!
You will find many offers here sounding too good to be true. In that case, they are not true.
Somebody wants your coins and is counting on your greed that you give them to him.

If a government would create its own crypto currency I don't think it would be any diffeent than the fiat it already has.
From that side there is no danger to bitcoin.
Banning bitcoin when it's already there, that would only create a black market. A bog part of the botcoin owners would use their coins anyway.
And that would be even less controlable than bitcoin already is for a government.
This would be the opposite what they want to achieve. So I don't see that coming.

The way you get the most profit out of bitcoin is surely by trading it against altcoins and back.
Every movement in price of bitcoin compared to an altcoin is an opportunity to earn money.
And because of the volatile nature of crypto currencies, there are a lot of those movements.
The problem is that you can lose money through those movements as well.
So the savest option to earn bitcoin this year was through simple holding.
Which of those two options is better for an individual, everybody must decide for himself.

Just because there is a ban that does not mean there can not be money made with bitcoin anymore.
So I think that many people still would use bitcoin, even if it got banned.
Of course a few things had to change, and the price would go down as well.
But I am sure a kind of underground market would rise.
Much bigger than the darknet we have at the moment, and completely uncontrollable.
I don't think that is something any government would want.

One difference is that there are many stocks where you get a dividend each year.
Another difference is that the crypto market in general is much more volatile than the stock market.
And then I must say that it is easier to get information on stocks. Each company must publish numbers every few months.
The earning options in trading and in simple holding as well are much higher with crypto currencies.