[Aqueous]

I think the jury will be out on this until BitCoin achieves a saturation point where its deflation due to rapidly fluctuating demand stops and its deflation due to being limited in supply starts. Which means, not for a while. We won't really know how deflationary BitCoin is intrinsically until the noise in our graph goes down - i.e., it stops being so susceptible to speculative bubbles. Maybe this never happens, but I think as there is more regulatory uncertainty it will.

Any coin that tries to adddress the problem of deflation right now will also have to go through a cycle of gaining widespread adoption before we know whethre or not the monetary policy built into the coin works. PeerCoin if it ever gains wide adoption will almost certainly seem just as volatile as BitCoin as it becomes more widespread. And we wont know until it becomes widespread if it successfully combats deflation.