Not to dump on the libertarian dreams of Bitcoin - but isn't a massive popping bubble the expected response to a naturally deflationary, non-government-controll

Not to dump on the libertarian dreams of Bitcoin - but isn't a massive popping bubble the expected response to a naturally deflationary, non-government-controlled currency? I have to assume that for any cryptocurrency to become practically useable for trade it would need to be government-backed for price stability (and to keep the proceeds from heroin and arms sales from running it up to $17k USD).