Those who bought gold at $1800 thought it was a good idea. Those who bought houses in 2006 thought it was a good idea.
Does that mean gold and property are not good stores of value?
Price volatility is obviously going be a factor until bitcoin is used and owned widely enough.
Every time a new segment of the market becomes aware of and want's to buy bitcoin, the demand goes up, and so does the price. After a small correction it stays very stable until a new group of people find out about it and create more demand. (BTW the price has been a steady $900-$1000 throughout January, after the November rise and December correction)
This is how the currency spreads. You have millions of potential buyers which is a HUGE potential demand, and demand makes prices rise.
Once the global demand has been met, bitcoin will probably be the most stable currency ever, because you won't be able to create any more.
EDIT: I also wanted to mention something about gold: If you bought gold for $600/oz in the early 80's and sold for $1200/oz in 2009 you might think that you doubled your money but if you adjust for inflation you've actually lost 75% of your money/value. http://dailybail.com/storage/chart-gold-1.png
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