General Aviation aircraft at DVT experienced a runway incursion event after misunderstanding ATC's instruction.

Narrative

My aircraft was positioned at C-1 behind the hold line for Runway 7R as I was previously instructed by the Tower to 'hold'. The Tower contacted me a second time and instructed me; as best I remember; to taxi into position and hold. I took this as a 'line up and wait' directive on Runway 7R. I read back to the Tower my intentions to 'hold' on Runway 7R. The Tower then asked me to exit the Runway at C-2; whereupon I was asked to phone the Tower via cell phone wherein a discussion ensued regarding what instructions I was given and what I read back. The Tower represented they had to issue a 'go-around' to a landing aircraft although I specifically stated I was 'holding'; emulating the Tower directive; on Runway 7R. Very little of my flying involves towered airspace and I either mistakenly misunderstood the Tower's instructions or made an error in dismissing the outdated phrase 'position and hold' as the current 'line up and wait.' In the future I will not take an active runway governed by a Control Tower unless I hear and say back the words 'line up and wait;' requesting any clarification until those words are used by both the Tower and myself.