One property of money that divides classical economists & Bitcoin enthusiasts is the significance of the deflationary spiral.

While Keynesians argue that a currency needs to be managed to sustain economic activity, Bitcoin enthusiasts lack a strong response.

I wondered about this for a bit and wrote a blog post just now. Any feedback would be appreciated.

http://jaekwon.wordpress.com/2013/12/02/the-supernova-theory-of-deflationary-currency/