Now that my stash has increased 1000%, I have no problem spending a few coins here and there for stuff. I just paid this minute for a week in a hotel with bitcoin, that felt awesome.
I realize this increase in value can't carry on for ever, but later adopters will still spend bitcoin if they have to, or even if they just want to. I think a deflationary currency would encourage a competitive marketplace - in the same way the computing/home entertainment/mobile devices sector is doing so well. After all, these technologies costs less year on year, yet people still spend a shitload of money on them.
People easily fall into the trap of believing that which enriches them is 'good', history should teach us very very suspicious of that feeling because it is usually our greed clouding our reasoning.
The comparison to Electronics is as inaccurate as it is self-serving, BTC's are not getting any better at the rate of Moor's law, their is no Billion dollar a year investment by thousands of skilled people and investment in newer chip fabrication that produce Moor's law growth in real utility and measurable physical performance. All we have here is a speculative bubble and a kind of pyramid scheme where early adopters sell to new people at the bottom of the pyramid who's only ultimate goal is to sell to some bigger fool down the line.
I'm not questioning whether Bitcoin is inherently "good" or "bad", (even though personally I do think it's a good, useful tool for the world).
As to the Moore's law analogy, OK it's not 100% accurate but Moore's law will eventually find a hard limit (like Bitcoin) unless quantum computing really takes off quickly, and the prices of comparable goods will probably still get cheaper year-on-year due to the lowering manufacturing costs. Like when CD/DVD players came out they were super expensive, but mass production made them cheaper today.
And I still think a deflationary currency would make for a competitive marketplace, even at a very high saturation/adoption level.
I agree that we're in a speculative bubble here, but that doesn't take away the utility and appeal of Bitcoin imho, and many people are betting on the future value of it. Which is fine I think.
