I wanted to take a moment and dispel some of the myths circulating about hoarding and deflation:
What most people don’t understand is that “deflation” (defined in this instance as the lowering of prices compared to bitcoin’s appreciation in) is a GOOD thing. It means the of your bitcoin money increases over time. You are rewarded for saving.
“Hoarding” is simply another word for “saving”. It means that the holder values the item more than the market does. He will only trade it when the market values it more than he does.
Whether or not bitcoin survives the tests of the market remains to be seen but at the present time the dollar (and gold) has crashed against bitcoin. Competition is good and that is why I am cheering for bitcoin.