Yes, I see a lot of Bitcoin skeptics and detractors online who don't seem to understand the divisibility of Bitcoin. Maybe this is a naming issue — the idea of a "coin" is pretty firmly ingrained in peoples' experience as an indivisible physical unit, with a penny (or international equivalent) being the smallest unit. So some Bitcoin commentators end up thinking mistakenly that 1 BTC valued at $33 means someone would have to round all Bitcoin transaction prices to the nearest $33. Whoops! Hopefully these commentators will encounter some kind Bitcoin advocate willing to educate them
Per the deflation issue: There are different (sometimes conflicting) definitions of deflation, and lots of different economic circumstances that can cause deflation, so it's hard for much meaningful conversation to happen without very precise definitions of terms. I am no economist, but as an armchair Austrian school enthusiast, I've found Murray Rothbard's discussions of deflation to cut through the vitriolic noise on the subject.
A helpful article on deflation from Mises.org excerpts some of Rothbard's thoughts here (the whole article is worth reading, though!):
Quote
Just as inflation is generally popular for its narcotic effect, deflation is always highly unpopular for the opposite reason. The contraction of money is visible; the benefits to those whose buying prices fall first and who lose money last remain hidden. And the illusory accounting losses of deflation make businesses believe that their losses are greater, or profits smaller, than they actually are, and this will aggravate business pessimism.
It is true that deflation takes from one group and gives to another, as does inflation. Yet not only does credit contraction speed recovery and counteract the distortions of the boom, but it also, in a broad sense, takes away from the original coercive gainers and benefits the original coerced losers. While this will certainly not be true in every case, in the broad sense much the same groups will benefit and lose, but in reverse order from that of the redistributive effects of credit expansion. Fixed-income groups, widows and orphans, will gain, and businesses and owners of original factors previously reaping gains from inflation will lose. The longer the inflation has continued, of course, the less the same individuals will be compensated.
Some may object that deflation "causes" unemployment. However, as we have seen above, deflation can lead to continuing unemployment only if the government or the unions keep wage rates above the discounted marginal value products of labor. If wage rates are allowed to fall freely, no continuing unemployment will occur.
It is true that deflation takes from one group and gives to another, as does inflation. Yet not only does credit contraction speed recovery and counteract the distortions of the boom, but it also, in a broad sense, takes away from the original coercive gainers and benefits the original coerced losers. While this will certainly not be true in every case, in the broad sense much the same groups will benefit and lose, but in reverse order from that of the redistributive effects of credit expansion. Fixed-income groups, widows and orphans, will gain, and businesses and owners of original factors previously reaping gains from inflation will lose. The longer the inflation has continued, of course, the less the same individuals will be compensated.
Some may object that deflation "causes" unemployment. However, as we have seen above, deflation can lead to continuing unemployment only if the government or the unions keep wage rates above the discounted marginal value products of labor. If wage rates are allowed to fall freely, no continuing unemployment will occur.