Gold's valuation has ~99% the same dynamic going on, yet gold holds relatively steady. So this theory is right out.
Occam's razor: Volatility is natural and inevitable in bootstrapping from nothing to something in the global financial world.
Gold does not hold relatively steady. Gold bounces around like a jackrabbit, but on a longer time scale, since there are other controls on the price such as industrial consumption, physical vs paper gold, etc. BTC has no such controls. At all.
"Jackrabbit but on a longer time scale"? "Jackrabbit" IS tacitly indicating a timescale. Everything is volatile on a long enough timescale.
And 99% (or 90% or whatever; the vast majority) of gold's valuation owes to its monetary uses. That's the point.
