Because of the nature of bit coin its impossible to determine how much of the current activity is actual commerce and how much of it is speculative trading. Th

Because of the nature of bit coin its impossible to determine how much of the current activity is actual commerce and how much of it is speculative trading. The truth is the system is set up to encourage deflation and there is nothing to prevent it from happening on a large scale. The huge price increase seen over the last few weeks is not because there is an explosion in commerce using BitCoin. Its because people are viewing BitCoin as a investment vehicle and they are hording it. As to your point about there not being an economy, thats exactly the point their currency is worthless not because people won't give you stuff for it, but because in terms of its ability to foster an exchang3e of goods and services it is actively discouraging you from using it ( why buy something today for 1 BTC when next week it will be 0.5 BTC ) The fixed nature of introducing new currency into the market only exasperates this problem as the hard limit on all bit coins that can ever be mined makes it so eventually even that small control over deflation will be non existent and increase the deflation.