I think agree with everything you said, except that you didn't spell out the negative impacts deflation has.
If people stop spending (which is what deflation implies - as people keep their money to hold onto its increasing value) then the economy slows, and growth stops or becomes negative.
If we look at the Bitcoin economy, the same thing could happen. There are ways around that (eg, an increasing exchange rate that could occur naturally), but it is a valid problem.
deflation would only be a problem if people start denominating debts in bitcoins - isn't this the idea of any currency?
(Edit: BTW, I didn't downvote you - I think your points are valid, and I hate how people just downvote things rather than discuss them)
If people stop spending (which is what deflation implies - as people keep their money to hold onto its increasing value) then the economy slows, and growth stops or becomes negative.
If we look at the Bitcoin economy, the same thing could happen. There are ways around that (eg, an increasing exchange rate that could occur naturally), but it is a valid problem.
deflation would only be a problem if people start denominating debts in bitcoins - isn't this the idea of any currency?
(Edit: BTW, I didn't downvote you - I think your points are valid, and I hate how people just downvote things rather than discuss them)