If what you have been saying is true, it should cause economic collapse without even having to compete with credit money as currency, its mere existence should be enough.
no, why?
Because you can always buy Bitcoin instead? Isn't that the whole idea?
No, I'm just perfectly convinced that the deflationary aspect will not hinder its usage in commerce. The claimed harmful effects of deflation seem to focus on the investment aspect.
Its rather the opposite.
As long as I can exchange currencies freely, I don't see the difference between owning coins or dollars. No rational person would convert their coins to dollars in order to lose the incentive to save. And if you were willing to spend your dollars, you must be willing to spend the coin equivalent. If Bitcoin does indeed hinder your willingness, it doesn't make any sense to be more willing to spend your already existing dollars, since you can exchange them for bitcoins instead. Does it make sense?