Does anyone see a problem with deflation and massive hoarding after all of them have been printed out?
Yes, you are right. Why would I sell my bitcoins, knowing the price will always go up. A market can only exist with a bid-ask side.
Well, simple - it doesn't *always* go up. It dropped to $55 last week and rose back to ~$135 today. And if you look at the charts the price can fluctuate by 3%+ in a single minute a few times per day. The real world isn't as simple as some economic model you see..