Quote from: akspecs on March 10, 2013, 10:57:52 AM

Quote from: Holliday on March 10, 2013, 09:53:07 AM

The only think it's lacking is a history of acceptance.

I agree with practically everything you said. Really.

I just want to consider everything. Although I am convinced that inflation is usually very bad for practically everybody (except for *cough*, you know who), I am not convinced that rapid deflation will provide the simple after affect of increased purchasing power. It can't be that simple.

It's not simple, and extreme deflation can also be detrimental. However, just like inflation, the cause of the deflation matters. In the case of Bitcoin, the vast majority of the deflation occurs because the economy is expanding at that rate. While deflation can impede that growth, (which is not necessarily bad, btw) it cannot prevent it; for to whatever degree that deflationary effect impeded the growth of the economy also limits further deflation. It's a self-limiting process.