But we already see this technology driven deflation. It used to cost thousands of dollars for a 36" color CRT TV. Now that TV, if you can even find one, is an order of magnitude cheaper. You can say the same for thousands of products. The "problem" is that as technological progress occurs, people expect to consume the benefits from that progress rather than the low prices of older tech. If we "locked in" technology at today's performance, we WOULD see deflation.
Yes, I would agree with all of this. I was just saying the example I was responding to would result in btc deflation and that depending on the economic school of thought you come from that either matters or it doesn't. If I comment much further I would be out of my depth in terms of my knowledge of economic theory.