Quote from: giantdragon on November 19, 2013, 02:24:36 AM

Very interesting dilemma - how merchants will lure customers to buy their goods or services for Bitcoin when most people will realize about deflationary properties of the Bitcoin and will spend their BTC very hardly?

The Bitcoin FAQ contains a link to an article that explains the deflationary economic model:
https://en.bitcoin.it/wiki/FAQ#But_if_no_more_coins_are_generated.2C_what_happens_when_Bitcoins_are_lost.3F_Won.27t_that_be_a_problem.3F

Keep in mind that the reason the Bitcoin price (in fiat currency) is skyrocketing right now is not because Bitcoin is deflationary (finite supply). It is because the world is getting to know Bitcoin and the market is deciding what the proper price is. In this environment, it seems to make a lot of sense to buy and hold Bitcoin. But that has nothing to do with Bitcoin's finite supply.

Just wait till the next real crash. Everybody will be talking differently. At least for a while.