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?
Does it means that BTC will be only investment (savings) instrument without chances to be fiat (inflationary) currency replacement? Or may be merchants will include expected BTC/$ rise and offer generous discounts to motivate spending Bitcoins?
Hunger and cold will incentivize people to spend a deflationary currency. I'm surprised the fiat people managed to sell this. Even if the speck of gold in my pocket will be worth more tomorrow, I have to eat today! People sell stocks when they have expenses and needs. In bitcoin's case, people have 'other' needs that keep the spending going.
Buying something because money is burning a hole in your pocket hardly seems wise.
So true. People have needs, wants, etc and economies need consumer spending.