[svv]

Instead of buying the computer with paper money, consider buying the computer with gold bullions during the commodity boom. Why buy that Macbook Pro with x bullions today if you can buy it with x-y bullions tomorrow?

People have different time preferences. Some value Macbook today high enough to pay y more bullions than they would if they waited till tomorrow. There're many currencies that depreciate faster than the dollar, but it does not stop people stuck with those currencies from buying Macbooks -- even though they could theoretically change their money to dollars (or invest in gold) and wait.

Adam isn't arguing that "deflation is bad," but rather that the supply of Bitcoins as currency will dry up as their value appreciates.

There actually is a possible problem with Bitcoins "drying up" connected with its deflationary nature, but it is not the one mentioned by Adam. AFAIK there's a limitation on the minimal amount of Bitcoin transaction. That means that as Bitcoins appreciate in value at some point it may be impossible to set and pay small enough prices -- and such transactions will require alternative payment methods.

This is a pretty much technical problem with the current Bitcoin implementation. It might be perfectly possible to design a deflationary crypto money system without this flaw.