^"controlled deflation".If rational markets actually existed you would be correct. However, that is a theory that gains immense popularity during bull markets, whereas "uncontrollable" aspects measured via technical analysis gain popularity during bear markets (people don't want to admit they are the cause of BOTH cyclical price increases and cyclical price decreases).Rational markets have been thoroughly debunked, several times (the theory always comes back though).Bitcoins to USD are a tiny fraction and basd on their circulation they should be worth 100 - 1000x more than they are. If markets were rational...SR's hedge is a risk-neutral hedge, meaning there is a "book" with USD/BTC rates overall and they buy and sell to match the cumulative total of members of the community.