This is not a critical problem (or even a problem at all, depending on whom you ask). This has been argued again and again, and what is always comes down to is that, according to the Keynesians, an inflationary currency is preferable for encouraging economic growth, but the reality is that A) economics is not hard science and B) as long as the inflation/deflation rate isn't extreme, both inflationary and deflationary goods make fine exchange mechanisms.
>supply of the coins need to gradually increase to support the flow of spending.
Why? If adoption increases, the value goes up, and people spend fewer bitcoins for the same thing. Bitcoin is especially good at this because it has a lot of base units.
>They will sell their BT for currency rather buy depreciating goods with them.
This is incorrect. You're arguing the extreme of the effects of deflation. People will buy goods with deflationary assets, because sometimes the expected value of owning a good is higher than the expected value of keeping an equivalent value of the deflationary asset.
The equivalent (and equally incorrect) ad extremum argument against inflation is "With inflationary currencies, no one will bother working, because they know the payoff of their labor will be worth less by the time they get it."
This is not a critical problem (or even a problem at all, depending on whom you ask). This has been argued again and again, and what is always comes down to is that, according to the Keynesians, an inflationary currency is preferable for encouraging economic growth, but the reality is that A) economics is not hard science and B) as long as the inflation/deflation rate isn't extreme, both inflationary and deflationary goods make fine exchange mechanisms.
>supply of the coins need to gradually increase to support the flow of spending.
Why? If adoption increases, the value goes up, and people spend fewer bitcoins for the same thing. Bitcoin is especially good at this because it has a lot of base units.
>They will sell their BT for currency rather buy depreciating goods with them.
This is incorrect. You're arguing the extreme of the effects of deflation. People will buy goods with deflationary assets, because sometimes the expected value of owning a good is higher than the expected value of keeping an equivalent value of the deflationary asset.
The equivalent (and equally incorrect) ad extremum argument against inflation is "With inflationary currencies, no one will bother working, because they know the payoff of their labor will be worth less by the time they get it."