You meant to say the opposite, that people are more encouraged to hoard their currency?
Yep, my bad.
So the price will not go up or down in purchasing power unless something will happen in the economy as without this change there won't be any reason for the change price.
I'm not saying that the purchasing power of 1 BTC would change; I'm just trying to understand how would the economy look like. Would productivity rise or fall over the long term?
But if you accept only BTC then your products are rapidly getting more expensive.
The price of goods would likely decrease if people used solely Bitcoin. If the economy grew, but the money supply remained the same, then the exchange rate of goods would decrease.