Sure, but no one expects that the 25K they have in their savings account to be worth tommorrow 250K. With crypto that could be a possibility, it more certainly could be 0, but a possibility nonetheless. I just don't think a society should have a gambling mechanism as a large scale economic operator.
Arguably a big part of crypto's volatility is because it isn't widely used enough. If as many people traded in Bitcoin as currently traded in USD, I think that would average out most fluctuations.
I'm also not sure how you delineate between speculation and gambling. Are you for the current system of speculative trading of regular currencies?
I could agree in principle on the volume argument, perhaps after looking over some economic models. However, a big part of the USD stability in the past 78+ years stems from the causation chains which make the following fact possible: the US Navy is the second air force in the world [1]. In order to believe in the stability of BTC, I must ask the stalinist question: "how many divisions has Satoshi?" [2]. It is a sad reality but might will make right in this silly world of ours for the foreseeable future. Now that's an invariant which I would have loved to see cryptocurrencies tackle, but they seem to have no interest in this, it's more of a changing of the guard ceremony, this crypto-fiat dance.
Coming to your question, to regulate or not to regulate [3]. I come from the very far left field (pun intended). The most different approach that I've seen recently, one which could maybe move the world in a significant way, is the financo-fiction detailed in Yanis Varoufakis' Another Now [4]. One of the more radical proposals from the book is that the persons starting a company should have only one share each: more of a library card system than a market. In another presentation, Varoufakis says something along the lines: compounding interest becomes a tool of exploitation when the poor are forced to borrow more and more from the rich which only get richer. Therefore, no, I am against the status quo as much as you can get, and although I am not an optimist, I believe it is up to us to decide in what kind of world we want to live and what kind of future we want to nurture.
[3] I asked ChatGPT to make a poem starting from Shakespeare's verse:
"To regulate or not to regulate, that is the question asked,
Whether 'tis nobler in the realm of finance to keep markets free,
Or to take action against the sea of risks and save us from a crash.
The pitfalls of speculation oft bring economic pain,
Should we not protect, regulate, and keep it in check to gain?
The choice is ours, the consequences dire,
Let us ponder, deliberate and make a wise decision, not retire."
