We've started a habit of creating periodic Bitcoin threads to confine discussion thereof to those threads and prevent excessive proliferation of Bitcoin topics in the discussion section. Here is a link to the last one, which links the other discussions. Lot's to talk about, and another bounce in Bitcoin's value (up to 33 then down to 24), so share your links and thoughts!
You seem, then, to be arguing that the behavior of our currency has an importantly different kind of effect on the overall economy than the behavior of any other asset.
...on reflection, I think that's actually right. Under hyperinflation, people tend to run around with wheelbarrows of banknotes rather than reverting to barter. I'll have to think about it some more.
Nevertheless, I would expect the effects of currency deflation to be limited or mitigated by the fact that you eventually have to buy food.
Hyperinflation only happens precisely because people have less and less interest in wheelbarrows full of bank notes. The reason it feeds on itself is that people desperately want to turn their notes into real goods or exchange for more stable currencies. That lowers the value of the notes even further since there are more notes chasing the same amount of desirable goods.
I'm not sure a hyper-deflation can r... (read more)