The counter-counter-argument is that it's volatile because it's still in its infancy. Gold used to be that volatile too, when wars were commonplace and new sources were found quite often. It can still swing significantly.

I've come around to the idea. I don't hold any bitcoin anymore, and the best chance to get rich is gone, but I can see a future where something digital (hence fundamentally ethereal) acts as dense and largely unregulated store of value, for the people who need it. In the same way the drug trade currently uses artworks and commodities when it needs to move value across national boundaries, they can use hashes or something like that. Transaction costs to convert those from/to cash are actually higher and slower than bitcoin will likely ever be (i.e. a week or two, and several hundrend USDs, will still be acceptable).

We'll never pay taxes or coffees with bitcoin, or hold savings accounts, but it will still act as a commodity.