No it won't be devalued, fiat still very important in order for bitcoin to establish a promising value that's worth for our investments. I can't argue that it's risky to hold, but that doesn't mean we're giving up on whatever risk it is. Over time Bitcoin potential on profit gaining still became more valuable than any other coins that exist in every trading sites.
I think the right term for that is deflation and yes, fiat is getting deflation because the government keeps making money out of thin air.
And if you are talking about how risky Bitcoin is, you should do some research first if you aren't confident how to manage the risk of owning a Bitcoin or how you will get a profit just by owning it. Most people just sold out all of their Bitcoin when in 2017 bull run because they just bought too late which means they buy when the price is almost in the peak and then boom, correction hits. That's the fault of most people who don't know when to hodl or when to sell or buy.