Quote from: Peter Lambert on December 04, 2013, 04:40:29 PM

The problem is that there are two definitions of inflation/deflation which are used by different people. There is monetary inflation, measured by the total amount of money in the economy, and there is price inflation, measured by the change of price of everything. Usually if you have monetary inflation you will also have price inflation, but it does not always happen that way. Bitcoins are an example of monetary inflation (25 new bitcoins are added every 10 minutes), but at the same time we have price deflation.

Good explanation.

"Inflation" literally means "expansion." If you are judging inflation by purchasing power it is unlikely the creation of new Bitcoin will have anything to do with it (given the current volatility). I think it's a bit silly that one would define Bitcoin as "inflationary" or "deflationary" depending on the day, and accept Ron Paul's definition of inflation-- the expansion of the monetary supply. As the previous commenters explained, under this definition Bitcoin will remain inflationary until more Bitcoins are lost/destroyed than created.