Response to Repeat After Me: Bitcoin Is Not Deflationary:
That’s ridiculous. Maybe Bitcoin isn’t a deflationary currency, but it certainly is a deflationary commodity. Because of its scarcity and an expected increase in adopters/investors/speculators (or economic growth in general), people expect the value of Bitcoins to increase. This in turn leads to people buying in and a further increase in value, leading to even more speculation. A bubble is formed. And then… For this reason, Bitcoin will never be a stable currency. It’s value will fluctuate until all confidence in Bitcoin is lost. No Bitcoin aficionado has yet given me a proper response to this argument (apart from: “Volatility will magically disappear when Bitcoin is established as a world wide currency”, or “Bitcoin is infinitely divisable” - as if that has anything to do with the topic).