Effectively having bitcoin means each time you buy something over a period of time they cost you less.
Yes, like all digital goods, bitcoins are intangible.
> I would say the dollar is pretty much intangible.
Aside from the physical ones, that is correct. So what? I didn't argue that being intangible distinguished Bitcoins for dollars. I presented problems with Bitcoins as a currency, and then noted the "intangible" as an issue with them as a non-currency collectors item if they failed as a currency.
> And my $10 in 2005 had more purchasing power than my $10 do now.
So?
> Effectively having bitcoin means each time you buy something over a period of time they cost you less.
Yes, the fact that BTC has a built-in hoarding incentive and disincentive both for spending and investment is a problem for it as a currency (medium of exchange), since, were it widely accepted as a primary currency it would drive resources out of productive investment, and reduce the rate of technological progress and economic activity.