Good article. Vol does affect cryptocurrecies. It invites speculators and traders as a money making opportunity. It also prevents risk averse individuals from adopting cryptocurrency.

I just want to add a few points to complement what you have noted. Traditional financial markets are less volatile because various types of market participants are present. If we talk about currency markets, we have banks, traders, long term investors, corporate treasuries hedging future fx expenditure, and govts to name a few. Large participation allows for liquidity and large number of buyers and sellers with significantly capital at different levels. In fact traders and speculators are the smallest group and those who want to use currency being the largest. Crypto markets on the contrary is made up of traders largely and hence the volatility.

I think, stability will be followed by increased adoption and not the other way around.

Once adoption increased regulations are setup, real world use cases will also increase. If you look at international payments, someone wanting to send us dollars from europe would want to do it using bitcoin, its just that acceptance is also low. And given small transaction times, volatility is not the biggest problem. Acceptance is.