Sitting and reading all this with an open mind gave me the giggles.
The fact remains that the tool bitcoin was made in a way to avoid regulation. It was made that way just for people who are pro-regulation to simply Fuck Off and find something else to regulate. "they can't have it all.
As for volatility "If investors really grow a brain and a pair" they would know what their bitcoin are worth and simple hold on to them.
Bitcoin doesn't have to obey the market price as one can sell his bitcoin to any one he choose to at any price whether higher or lower than what the market is trading at.