Your saying that deflation causes a currency to collapse. Id say this is wrong.
No, I didn't say that.
I said it's role changes from a monetary one to a utility one. In other words instead of investing in a potential cryptocurrency that sees adoption across many sectors of the economy, you're investing in a business with a fiat revenue stream.
The problem I see with that is not that it isn't potentially a successful revenue stream but that it changes the nature of the 'product' and makes it far easier for competitors to replicate.
Again, utility value and monetary value to NOT add. They are mutually exclusive roles in any economy. You don't add value to a monetary medium by giving it utility value - rather the utility value diminishes the monetary value by making it less efficient in a monetary role.
This is a platform though essentially. So the one use or "app" would be as described pay per private browsing. Darkcoin can still be used as currency elsewhere. And indeed on other "apps" within and outside the platform.
The coin is still the coin. The platform is independent. That's how I see it anyway.