Bitcoin is different, in that its supply is limited. Indeed it causes monetary deflation, but the impact is predictable through a blockchain that displays all data from start to finish and in realtime, open and transparent. Prices of goods and services in the “Bitcoin economy” will naturally fall due to competition and innovation.

A deflationary spiral will not occur, because Bitcoin does not come from issuing new debt. Even the “interest/return” rate will adjust, until a balance is reached. This has already happened when gold was the standard of world currency exchange rates. Prices of goods and services fluctuate according to demand, without artificially increasing or decreasing the money supply by the central bank.