The “deflationary so people won’t spend it” point is a self-defeating argument: are you going to starve to death in order to “profit” from a deflationary asset increasing in value? If so, you’re not profiting from the increase in value at all, by design, since you’re dead.
The fact an asset is deflationary doesn’t mean people just stop using it, that would be a ludicrous thesis to defend. Rather, it only means they’ll think twice before spending it unwisely, which necessarily is a very good behavior to adopt as a community.
