Why something that has a finite supply would be viable as a currency.
Since it's deflative all the incentive is holding, not spending. Why buy a house for 5 bitcoins now, if I can get it at 4 bitcoins 3 months from now..What if I could get it at 1 bitcoin in 3 years...crazy right..?
And no one spends, because the incentive is not here.
Our economies are all based on people wanting to spend or invest rather than stock money.