Maybe it can't be avoided, but its magnitude can and should decrease, simply because the speculation can't continue forever. The price of Bitcoin has been so volatile because people have different opinions on Bitcoin fundamentals, some say it's useless, others believe it's going to change the world, and this is the fuel for speculation. Take gold for example, it's the opposite of Bitcoin - it's boring, people have figured out all major use-cases long ago, nothing changes in its ecosystem. Eventually Bitcoin will become boring too, protocol improvements will become less frequent, adoption will be slow after reaching certain point, and with because of that there will be no reasons for the price to jump/crash, because Bitcoin will be predictable.
ah, but even gold can be highly volatile. that was a 600-700% increase we saw during the '01-'11 bull run! as a trader, that's a hell of a trend to ride. maybe not quite
bitcoin-level volatility, but definitely not boring either. the crash saw a nearly 50% drop from the ATH as well.
it's interesting to ponder---how the price trajectory
should or
will look. it's incredibly speculative, and more than that, there are no comparable assets to study. we often see comparisons to adoption curves (like the internet or cell phones), but no technology ever incorporated a native currency with a predictable, limited supply. it's a totally novel thing that we have no historical comparison for.
