Did you know...Bitcoin Died 229 Times According to bitcoinobituaries.com?

As of today, January 6th, 2018, Bitcoin has "died" 229 times and counting according to https://99bitcoins.com/bitcoinobituaries/. In case you were not aware, this is a website that collects various negative news articles published across the Internet and main stream media related to Bitcoin. All of the articles are placed in chronological order starting with the newest articles on top of the 1st page. Believe it or not, there is an article dated January 2, 2018 titled, "Why Bitcoin is Stupid" https://99bitcoins.com/why-bitcoin-is-stupid/ by Mr. Money Mustache. This is after Bitcoin's unprecedented bull run for all of 2017.

In this post I want to take a closer look at the first post placed on this website. This will take us back in time all the way to December 10th, 2010 when Bitcoin was only $0.23 USD. The title of this article is “Why Bitcoin can’t be a currency” – The Underground Economist | $0.23
From BitcoinObituaries.com
https://99bitcoins.com/bitcoinobituaries/page/12/ , written by Jordon Tuwiner.

Jordon starts by talking about Bitcoin having either a deflationary value vs inflationary value..."While Bitcoin has managed to bootstrap itself on a limited scale, it lacks any mechanism for dealing with fluctuations in demand. Increasing demand for Bitcoin will cause prices in terms of Bitcoin to drop (deflation), while decreasing demand will cause them to rise (inflation). What happens in each of these cases?

Let’s start with deflation, because right now demand for Bitcoin is on the rise. What do people do when they think something’s value will be higher tomorrow than it is today? Well, they acquire and hold on to it! Who wants to give up money that’s constantly rising in value? In other words, rising demand causes demand to rise further. Irrational exuberance at its finest. Deflation begets deflation, ad infinitum, or at least until something breaks. You could make lots of money on Bitcoin, provided you get out of the market at the right time.

Eventually, of course, prices won’t be able to fall any further. Either people won’t be spending their Bitcoin anyway because they’re making so much money just by holding it, or the merchants will get tired of changing their prices every few seconds, assuming they don’t hit technical issues first, like the indivisibility of coins or their software not being able to handle all the zeros after decimal points.

At this point or shortly before, people will start taking their profits. They’ll start spending or selling their hoarded coins. If this manages to start any inflationary momentum at all, you’ll see the deflation scenario played out in reverse. And who’s going to stop it? The supply of Bitcoin is fixed and there is no other use for it besides as a currency. I doubt prices will have much of a chance to rise, since this will happen so fast. Merchants will go from taking one coin for a year of porn to not taking Bitcoin at all, and a bunch of people will be left with worthless Bitcoin.

The reason this can’t happen with government currencies is that government currencies are backed. They’re backed by bullets. If demand for USD starts to fall faster than the USG would like, the USG can just raise taxes without increasing spending, increasing demand and reducing supply simultaneously. There’s a bunch of stuff the FED can do, of course, and the FED tends to act first, but its operations are harder to explain. This is obviously not a perfect mechanism, since bubbles are still blown and popped, but even this mechanism is not available with Bitcoin.

Negative feedback loops like this are basically homeostasis. In nature, positive feedback loops like exist with Bitcoin are lethal; the only thing that’s even kept Bitcoin alive this long is its novelty. Either it will remain a novelty forever or it will transition from novelty status to dead faster than you can blink."

In his defense, he did add this update on January 28th, 2016: "Since I posted this, I’ve been convinced that due to its unique properties as a purely digital, scarce, easily transferred artifact, Bitcoin’s exchange value is probably enough by itself to prevent a deflationary spiral to zero."

So what do you guys think? Will be BTC ever be used a digital currency that is universally accepted around the world? Or will people only hold onto it for its deflationary aspects, and when their profits are high enough, there will be a massive sell off causing BTC to switch from a deflationary asset to an inflationary one? I am curious to hear your opinion...