Bitcoin was designed to create runaway speculation at determined intervals
The availability is designed to be the inverse of the demand, meaning that as interest doubles availability halves, meaning that insane deflation is practically guaranteed. Moreover bubbles are designed to appear at fixed intervals. I know there is a fake excuse for it being the way but it is completely undermined by Bitcoin being everything that causes instability and speculation in commodity put on steroids and rolled into one. I've also seen a statement regarding how much trade they expected to eventually to be done with Bitcoins which again would not be possible without an insane increase in value of the individual coin.
Reading up on this shit made me stay up way, way too long so please excuse any obtuse sentences.
Starting off the blockchains at the base of the system revolve around finding a hash calculated from data about the preceding block + recent transactions + current time + some counters which match a precise criteria. If found the data used for the hash is put into a new block and uploaded to the other peers to be added to the chain. The strictness of the criteria and thus the difficulty of solving blocks scales directly relative to the amount of computing power applied by all users such that (ideally) a constant number of six blocks are solved every hour, and coins are awarded for each solved block. This alone means deflation will be massive.
As the number of blocks solved (meaning instances of coins awarded) is the same regardless of if you are ten people or ten million the event of getting a coin rewarded is effectively a million times rarer in the latter case than in the first case. This is extreme to say the least. If interest in something increases a million times then typically the effort to supply it will also increase about million times. Even if something is naturally scarce, like a mineral, more people looking for it naturally leads to more of it being found and thus keeping supply more or less proportional to demand by some factor. Not so for Bitcoin which has a fixed supply regardless of demand.
On top of this the number of coins awarded per block is designed to be fucking cut in half every four years, and by cut I mean from one minute to the other. Eight years on from 2009 the start of bitcoin is mid 2016, right when the exponential increase in value started due to the massive speculation that this plummeting in availability caused. Had speculation not been the goal the change in the number of coins awarded would have been designed to followed a smooth curve as to keep the upsets to a minimum. Instead the system has gigantic market upsets built right into it and, more importantly, at predetermined dates. Essentially it was designed to let those in the know be aware of when to intensely hoard coins as they would know exactly how long they would have to hold them before getting guaranteed returns on the "investment".
Fuck you and this fucking character limit.