If Bitcoin keeps going up like it is for the past year, what incentive do you have to spend it on anything as a currency? Every merchant can accept it, but why would anyone holding it want to trade it away for a depreciating item like a Tesla car/etc

this is applicable even if it goes mainstream at say $1mil per BTC. in a land where everything is priced in it, the monetary supply is fixed, but economy keeps growing. permanent credit shortage. so permanent deflation. house, food, cars drop in price every year

2

the lesser the economic activity you engage in, the richer you are, since your hoard's purchasing power rises every year. all other assets lose some value every year and reduce your purchasing power

3

or maybe you keep each country's currency, and float them against BTC. just devalue it against BTC every time you grow and need more money supply. at which point the blockchain is redundant, and you could do the exact same thing with gold without the ongoing energy cost

the entire first 2 phases of the industrial revolution happened under a gold standard, so even at the height of it, growth rates were in the order of 5-10%. US gdp/capita in 1800s was growing the fastest in the world and it was just 5%.

gold output and sourcing it from colonies/trade was a limiting factor. post ww2, we've been able to do much faster growth precisely because we can adjust the money supply or cost of money (rates).

maybe a new crypto on a blockchain 2.0 of sorts will come about with the ability to create credit, but without it, it just cant be used as anything other than a speculative instrument