Deflationary spirals are a hypothetical concern and mostly a fringe neo-Fisherian idea that has recently gained some mainstream nodding, but is otherwise difficult to verify in any way.<p>For one thing it assumes a massive collective irrationality where people&#x27;s expectations are all rendered berserk and plunged into a negative time preference. It&#x27;s a very tough gambit to make that people can withdraw their propensity to consume to such a high extent. It&#x27;s tough to presume that the heterogeneous stock of capital and the time structure of production will just stand still to a deflationary pressure and not readjust to add more stages or adjust the price spreads in between. [1] Of course, BTC being a global currency means it exists in competition and per Gresham&#x27;s law can always be driven out. Not a catastrophe.<p>[1] <a href="https:&#x2F;&#x2F;www.jstor.org&#x2F;stable&#x2F;2547921" rel="nofollow">https:&#x2F;&#x2F;www.jstor.org&#x2F;stable&#x2F;2547921</a>