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Are you predicting it will bottom at 300 before launching into another growth phase, or that it will remain closer to 300 thereafter?

I think the latter is naive. I think bitcoin is the first currency whose perpetual deflation is ensured by the contract that defines it.



it is entirely possible that the bitcoin proprietors will change the protocol to no longer be deflationary; although that would cause some large-scale flight. I am not convinced of the keynsian model that inflation is exactly supply divided by velocity; nor of the 'crude austrian' model that inflation is function of supply only... If the demand goes to zero, so will the value.

While I think that bitcoin will recover, perpetual deflation is not guaranteed. Indeed, in general deflation of bitcoin depends on an increase in demand that outstrips the increase in supply.




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