what you are mentioning is deflation, the opposite of inflation. there is a limited amount of bitcoins, so indeed it is indeed deflationary, unlike most fiat, that central authority keep printing anytime they need.

you are right, and why deflation better than inflation?

Well, inflation makes the money you have in the bank loose value over time. In extreme examples you have countries like Venezuela and results are bad: people struggle to keep their buying power, companies are leaving the country, imports become way more expensive, etc.

I don't think there is a real world example of a country with deflation, so I don't know if the opposite would be true or what real consequences would be, but you can expect the opposite to happen.

This is a rediculous argument. You can’t just introduce a radically new technology and currency to the market and expect it to instantly be priced at is true value.

Give it time. Bitcoin is a populist movement. Eventually the market will find it’s correct value and volatility will decline (volatility in bitcoin has actually been declining for some time now).

volatility has declined?

are you for real?

bitcoins were at 700 last year. And its 'value' dropped by 3000 just a few days ago, just to go back up. In what way has it dropped?

Percentages my friend.