It is true that price deflation encourages hoarding. But that's why merchants will have to accept other currencies to keep on selling.
That currency competition will decrease the value of bitcoin as a medium of exchange, decreasing demand, decreasing deflation.
Since bitcoin is not the only currency on earth, deflation can't kill it.
Well said. Although let's hope one of these other competing currencies aren't bitcoin v2.0 with speculation and deflation proof features.
I hope one of these other currencies is
freicoin. And also other non-cash monetary systems such as Ripple or LETS. But I don't think freicoin can kill bitcoin neither. Demurrage is an inconvenience that is not tolerable for certain use cases. I don't know...collateral for future contracts, lotteries... Just speculating here really. Most austrians think that freicoin just can't compete with bitcoin precisely because of the demurrage. There's only one way to find out, and that's implementing freicoin. I hope I get the time to do it soon.