[aschoen]

The total number of bitcoins in circulation is capped, even though the total quantity of wealth in the world continues to increase. If bitcoins were the only currency used, then yes, this would cause hoarding problems. Does this mean bitcoins are flawed? No. It just means that there is a cap on how much wealth can be purchased with bitcoins.

[stevenwagner]

It is 21.00000000 million-- or 2.1 quadrillion of the smallest-possible-unit.

[Raphael]

So every person on earth only gets 300,000 of the smallest possible unit?

[stevenwagner]

With the current software yes. It could always be expanded if need though.

[aschoen]

In other words, prices of goods (in bitcoins) will (eventually) stop deflating, even though there is a fixed quantity of bitcoins, because other cryptocurrencies will be introduced.