What I just read here is, Bitcoin is doomed to fail because of its qualities and innovations that make it revolutionary, and different from currently established means of exchange, and in the case of bitcoin much, much more.  These innovations will make Bitcoin so popular that speculators (that every aspect of the world economy is speculated on be damned) will cause undue volatility, instead of less volatility due to increased trading, and speculation creating more volume, more buyers and sellers, with different ideas about if the price will go up or down, trading different time frames, some market-making. 

Thinner trading + speculation = higher volatility  Thicker trading (which the surge of speculator money will surely create, more $$ betting, higher volume) + speculation = lower volatility, the price will still move, but if you look at any currency or commodity, or stock their prices move all the time, often wildly.

Bitcoin is at the very beginning of its long journey, when a company like Apple goes from $1.00, to $10.00 it is thinly traded and very volatile, as it goes from $10-$500, the volume goes up, the higher the price goes up, as the number and amount of speculation goes up, reducing volatility.  We are in the $1.00-$10.00 stage for bitcoin now, when we are up at $10,000, or $40,000, or heck $100,000 according to some analysts, I assure you the volatility will be lower.

Also, the deflation problem does not apply to non-fiat, based economies where they are built on credit, and leverage added upon leverage... That's where deflation is a "bad" thing.  It doesn't apply to something like Bitcoin (Gold 2.0, new and improved for the 21st century), or Gold.