Yeah because the Dollar was perfectly stable when it was five years old and accessible to only a select percentage of the population (how many people are really able to use a wallet with the cryptic addresses? Not my parents at least).

Besides, when many people buy their house in Bitcoin the market cap would be much higher and the price would not fluctuate 25% in one day. Not without a fatal flaw in the algorithm or World War III anyway.

The only reason Bitcoin is unstable is because it's not used by that many. That's not a flaw from Bitcoin, that's the network effect. Like Facebook versus Google+, though that's a bad comparison because G+ has no game-changing advantages, at least none that Facebook couldn't replicate.