Rick Falkvinge (@Falkvinge) posted his latest on Bitcoin explaining the flaw in the argument that Bitcoin cannot survive as it is a deflationary currency. Excerpts:
“While the economy as a whole may not have been deflationary, parts of it have been for decades”. “Electronics have been deflationary since the 1970s. A gadget with a certain performance can always be bought much cheaper a few months later, and for practically zero cost some two years later. This is deflation. Prices fall and your money becomes more valuable. [Yet, we still buy electronics.]”
Falkvinge has written extensively on Bitcoin, including his series describing four hurdles facing Bitcoin and another series on forces driving Bitcoin.