Here comes Goldman Sachs to the Bitcoin Community , is that what we really need?
Trade exchanges have often had this problem when they 1st start, but once the number of products and services grows the value of the dollar finally begins to settle. If you want to determine the value offer it to the market place for cash and see what offers you receive.
To stabalize the price you need more product that can be purchased using it. Once you are able to purchase gadgets such as iphone 4, TV and Clothes, Food , real estate etc the price will stabalize. Bitcoin needs to backed by goods and services to stop the volatility
To achieve this we need to encourage more businesses to get involved.
The value of any currency is realitive to its purchasing power.