Falling prices and strong growth tend to be mutually exclusive in the real economy. Suppose you’re an investor and an entrepreneur comes to you with a proposal to build a factory, and the business plan shows next year the factory will cost 5% less to build, and the products will sell 5% cheaper. Why build a factory today if you can get 5% a year increase in purchasing power just by hoarding currency? You need much bigger margins than are currently typical outside tech and zero marginal cost products. Incur debt, and even at the zero interest rate bound, you need 5% more real income next year to pay it back. In a modern economy, especially where there's a lot of debt finance, price deflation is death.<p>Anyway, since Bitcoin isn't a currency in the sense of a transaction medium, a stable store of value, and a unit of account, but more akin to a digital pet rock or Beanie Baby, deflation doesn't really matter very much.