Producers benefit from deflation as well as long as the deflation is caused by a fixed monetary supply and not externalities and there is plenty of liquidity.
Deflation is the reduction of money supply
relative to the availability of goods and services. That is, you can have deflation by keeping the money supply fixed (not declining), provided that the amount of goods and services in the economy increases, which is usually the case. Or you can have deflation by reducing the money supply, but this is rare. Deflation is not "caused" by the relative reduction of money supply. Deflation
is the relative reduction of money supply.
Producers do not need a middle man to issue predatory loans as they can get credit for free by saving their deflationary currency.
Yes, if they have savings (which are basically equivalent to investment). But if they do not, and cannot afford to save, which is the case for most business nowadays, they are forced to take on credit. As I said, our current society runs mostly on credit. We can argue whether this is "bad" or "good" or "how things ought to be" - but if we fail to admit how things actually
are, we are just burying our heads in the sand.
Other options are available such as angel investors and Venture Capitalists willing to offer money in exchange for stake or simple kickstarters.
I suspect that you have never run a business or at least have never had to do turn to a vulture capitalist.
In any case, all these arguments are bogus. The
correct argument against this theory is that producers make their profit from the spread between the production costs and the sale price, so they will thrive as long as the prices of raw materials and labor move (up or down) at the same pace as the prices of the end product, so deflation shouldn't really hurt them.
There is plenty of liquidity within bitcoin because of the inherent divisibility of the currency. Even if 99% of coins are "horded" there is enough divisibility to be a functional unit of account and if more than 8 decimal places are needed a soft fork can accomplish that.
Liquidity or divisibility has nothing to do with this, although deflation can cause lack of liquidity in some cases.
You are attempting to apply economic principles which are based upon flawed assumptions supported by special interests who are content at misleading he public.
And you have a problem with reading comprehension. I clearly stated above that I personally think that this theory is complete nonsense. So, I am not doing anything of the kind you are accusing me of. I am just trying to explain the theory used by most mainstream economists; a theory I personally disagree with. Learn to read before you post.
I have heard their reasoning for not mentioning true inflation rates which fail to include healthcare, food and fuel and it doesn't hold water .
You haven't researched deep enough. They have done something much worse - they have redefined "inflation" to mean "rising prices", instead of "increase of the money supply relative to the available amount of goods and services", which used to be the proper definition for centuries. Ludwig von Mises has a nice critique of this nefarious move in one of his articles. The real problem is not that the core CPI does not include food and energy; the real problem is that they have redefined "inflation" to mean one of the symptoms instead of the actual thing.
We already have plenty of digital currencies which embrace keynsian economic principles to choose from, their called fiat. All we ask for is a option to use a currency that follows the wisdom from a different school of economics, namely Austrian.
I am a fan of the Austrian school of economics myself, but the knowledge of it that you are demonstrating here is rather shallow.