Comment: They are priced in fiat

They are priced in fiat currency. They are neither inflationary nor deflationary, just as a limiting the number of shares of a stock does not make them inflationary or deflationary. It is their basis, the Dollar or whatever currency that one uses, determining their price/value.

Today the bit coin is priced at $X.XX. If it was its own currency you would instead just be talking about X.XX bit coins. You would only know their value by negotiating a deal for a product.

As said above, they are a commodity. They are not a currency anymore than gold coins, silver coins or pork bellies are a currency. Their value is subject to speculative forces, as is clearly seen in the long term bit coin chart.

I'm a specualtor. I might would consider trading them except that the IRS could come out with their opinion on bit coin and knock any kind of floor out from under. And if the price of bit coin takes off, you can bet every last one of your 1's and 0's that the IRS WILL get involved.