[harshpotatoes]

So, I don't understand. Why does bitcoin have such high deflation?

Is this just because there has been a constant stream of people switching their traditional currencies for bitcoins at a rate faster than bitcoins can be mined?

Presumably at some point bitcoin will stop being deflationary if it ever wants to be useful as a currency. When does that happen?

Why do people buy bitcoins if it isn't really useful as a currency yet? I mean, there are supposedly 3.5 billion USD worth of bitcoins in existence, but if I want to buy any sort of physical product or pay for utilities, I have to use a traditional currency.

Currently it appears that bitcoins are most popularly used for less than legal purposes (payment for drugs, payment for services to avoid taxes, payment for blackhat services). Does this mean that by buying into bitcoin, I'm essentially providing USD to these black market activities which might not have had USD to begin with?

Many questions I don't understand...