Bitcoin is the virtual equivalent of gold. People don't spend gold. We need the virtual equivalent of cash.
This statement nicely summarizes your post, and also the complete error of it. Remember gold WAS the currency of the United States of America up until gold confiscation in 1933. However US dollars were still technically redeemable (if you were a foreigner) and thereby backed by gold up until 1971.
A perfect example of the exact opposite of your argument happens everyday. Technology continues to improve everyday and become cheaper as it does so. The deflationary pricing of technology does not cause anyone to shy away from purchasing today what they know will be obsolete or even useless in a mere couple of years. It could be argued hi-tech is the only industry that has done well in the last few decades (edit: besides the financial services industry).
The hoarding argument is a fallacy, an illogical argument disputed by the facts. However this argument has been ingrained into the social subconscious by inflationists, as I'm sure you can find video evidence of Ben Bernake supporting your view.
Just because we used to have a gold standard doesn't mean there were no problems with that system. It was abandoned in 1933 to counteract severe deflation in the US economy.http://en.wikipedia.org/wiki/History_of_the_United_States_dollar#The_Gold_Reserve_Act
Severe deflation? Sounds familiar...
As for your counter-argument technology example, you're right, technology has been getting cheaper. Unfortunately it's a bad example because it's just about the only thing that's getting cheaper over time. It's also mostly a luxury category. People have to buy staples such as food, housing, fuel, medicine, etc. before they buy electronics. And the price of staples has been steadily rising.
Lastly, if the hoarding argument is a fallacy feel free to offer some facts to support that position. It's ironic that you cite Bernake's hypothetical agreement (with me) as evidence to support your own position. You assume that "everyone" knows that whatever Bernake thinks must be automatically wrong. I hear Ben Bernake goes to church every Sunday... OMG, you've just proven that God doesn't exist!