We have to make people want to list their prices in BTC. That means it has to have some semblance of stability. Otherwise it can be nothing more than a proxy for actually stable currencies. Deflation itself isn't the solution or the problem, it's stability. If BTC gained 5% of its value every day, it still wouldn't work as a currency because the value isn't stable. It's gotta do something like only gain 5-10% of its value every year so that people can know the value of a Bitcoin. We need to be able to go to the store and have an expectation for how many BTC a loaf of bread costs without it changing every week.
Without stability, BTC can never stand on its own.
This is an interesting point to bring up, I have a number of web projects under development and although I have limited coding skills in PHP etc I would like to provide users with ability to see BTC prices in real time. As of yet I have not found a system that does this, are there any systems that can change prices in real time relative to average Bitcoin value? At the moment I cannot list a product for
BTC2 when a week later those
BTC2 decrease in value by 30%. Merchants do need stability but entrepreneus also need adequate addons to upgrade existing sites, at the moment it is a bit to Wild West.