Jeff, while I agree with you, I get Stu’s argument from my friends all the time. How would an economy thrive with a deflationary currency? Their argument is that the economy would contract because everyone would hoard Bitcoins and stop spending. They would all just hoard bitcoins and not buy anyth...

Yes, but ones purchasing power increases over time. People aren't going to stop eating, or buying items that they value/need/desire. As far as I'm concerned, this is the main inventive that turns humanity from mindless consumption and creates the incentive to take purchasing decisions more seriously...

What’s your theory how we will solve the issue of many people losing the opportunity to work because of being replaced by technological advancement? The increase in purchasing power doesn’t solve this, does it?

Let’s assume the money supply is fixed. If productivity rises then yes, prices should fall, if we also assume demand remains constant. If demand falls then prices might collapse and the additional productivity is worthless. If demand rises as productivity rises then price might stay constant. ...