The same problems it has had for the last 10000 years. You can't seriously expect these "realizations" to have an effect on Gold prices.
Don't mistake the forest for the trees. When BTC learns to be less volatile, THEN we can start talking about replacing USD or EUR.
Until then, understand one thing. People want STABILITY in their currencies, at least if they are going to spend it.
Agreed. People are less likely to spend as the price climbs quickly. This can be mitigated with a viable options market, it would provide a hedge against bad movement and it would increase liquidity significantly which would lead to more stable growth.
Secondly, only very recent investors may worry about volatility. Everyone who bought in 1 or more ago don't care about volatility. All fluctuations are well above their nice profit and they can spend 1% of their stash comfortably, knowing that the remaining 99% are growing in value faster that the stash is being depleted. Today's investors would have to wait another month or year before they also get 10x return and won't worry about volatility.
"Store of value" works pretty well when your value not only stays the same, but increases over time. 10% jumps do not matter if you have 10x more than a year ago.
Supply and demand have an effect on the gold price. Markets go up, markets go down.