Unfortunately humans are famously loss averse[1] which leads to downwardly sticky nominal prices[2] in practice. In the face of deflation a lot of people just stop buying and selling and hope that prices go back up, or hold out for a nominal offer as big as what they think they "should" get even if the real value is the same.
If your bitcoin economy is full of nerds who really understand the subjective value of money than that's fine. But if you were to start having lots of normal people using Bitcoin and denominating prices and contracts in Bbitcoin than deflation would be a huge problem. As long as most of the surrounding economy isn't using Bitcoin it still wouldn't have the positive feedback loops that caused the Great Depression under the gold standard, though.
If your bitcoin economy is full of nerds who really understand the subjective value of money than that's fine. But if you were to start having lots of normal people using Bitcoin and denominating prices and contracts in Bbitcoin than deflation would be a huge problem. As long as most of the surrounding economy isn't using Bitcoin it still wouldn't have the positive feedback loops that caused the Great Depression under the gold standard, though.
[1]https://en.wikipedia.org/wiki/Loss_aversion [2]https://en.wikipedia.org/wiki/Sticky_prices