When people discuss the deflationary bias of bitcoin, I think they're implicitly comparing it to the current inflationary-biased dollar. That's not the right way to think about it. If you imagine an economy where bitcoin *is* the currency, and we're not measuring it against the dollar or anything else, the deflation simply becomes the status-quo baseline. I don't hoard bitcoins because they're deflating; that's simply the field on which I'm playing. I try to do better than average, *against* that reference frame. This all becomes intuitive and sub-conscious if that's the world in which you've been operating for a while. ... Now, transitioning to that world does indeed have some other dynamics going on, but that's not usually the point of these theoretical-merits-of-a-deflationary-currency discussions.