You do know that btc now isn't really a currency (and revolutionary, yet, but has potential), but store of value?!
It already is revolutionary. You haven't seen anything like this before, have you? If it's a good store of value then it is also a good currency. I use bitcoin to buy shit all the time. Any merchant that can hold for just a while will most likely be happy with their returns.
No it's not. Concept is revolutionary, but usage isn't. It's nowhere near it's potential.
Also gold and diamonds are good store of value, and you can buy shit with it, but it's not currency...
Holding = less bitcoin available = use of smaller BTC denomination (like mBTC) = purchase power of bitcoin going up
When there are enough merchants who adopt bitcoin and give discounts people will use it because it's simple and much easier. It has value as a payment system, that's one of the reasons people are adopting. Holding will not negate the value.
Denomination doesn't matter, hodling is bad for bitcoin (longterm, and good for hodlers, short to midterm).