What do you think is the likelihood of a 2008 financial crisis happening again if we only used bitcoin and there were no fiat money at all?
My believe is that it would still be all the same.
I don't think Bitcoin would stop inflation or deflation. We are only a few users on it, but we can already feel the effects of its price drops.
With limited supply, bitcoin can holding back inflation. Inflation happen because paper money always flooding money market and its economic law applied on supply and demand.