I read most of this thread and I had a lot to add, most of it I forgot. This is what I remember:

I've never fully understood how exactly a "deflationary event" works. The definition of deflation brought up ("increased demand + limited supply = lower prices of goods/services") makes sense. But what makes this a "deflationary event". It's just increased demand for the medium so value measured with it has a lower price. And how does "selloffs don't cause panics and are almost immediately absorbed by buying pressure, for one" follow from that. 2011 bubble was also increased demand + limited supply. Where's the difference?

Let's face it: Bitcoin doesn't really have an economy: silkroad et al just use bitcoin as a payment mechanism to transfer fiat from buyer to seller and satoshidice et al don't produce anything or "create value".

Bitcoin is indeed very much like gold. I would probably even like bitcoin if it didn't have the added feature of being useful for making payments (which gold is not). Bitcoin is unique in the sense that it has a limited supply yet can be used as a payment mechanism.

;tldr: I don't understand how "deflationary event/spiral" is a theory applicable to Bitcoin because Bitcoins unique combination of Store-of-wealth and payment functionality and also because of the lack of a real bitcoin economy.

arepo, if you want to discuss, can you answer the question(s) in the second paragraph?