I am not quoting...
1. You make many assumptions
Bitcoin as a fixed money will not have a fixed value, and this is not what a static economy is in the first place, a static economy is one where there is production, but it is the same in every given period. So, either you assume that at some point there will be a time that there is no more products able to be added to bitcoins exchange-ability and the volume will be the same always there after.
If everyone consumes all they earn and they choose to take a loan in order to consume more or invest in a business, why is it any concern if they cannot pay, that is between the borrower and lender, if I were a lender, I would remain appraised of who does not pay, and not lend to them...
2. Your example
It ignores that bad business models ought to be met with failure, the emotive argument that someone will starve is utter crap as well. The owner of Bitcoin will not have to issue more bitcoins, as people can opt to use other media of exchange, the worst that will happen is that the value of bitcoin will diminish, which skips ahead to another point....
You are also mixing what we are doing with a government, they are two separate and completely different scenarios...
3. Since there is no legislation forcing people to use Bitcoin and only bitcoin, if someone hoards bitcoin it makes the commodity of bitcoin less useful as a medium of exchange, and people will abandon it, this will decrease the value of bitcoin because it has NO OTHER USE other than a medium of exchange...
As for the Dollars in foreign hands...
It is inflation that caused that issue, and did nothing to preserve the value of the dollar, it was the coercive laws to use FRN's that retained the utility of the dollar, nothing retains it's value, it is why what cost a dollar 70 years ago costs much more now, even with our growth in the US economically, we could not hide the inflation of the dollar...
4. And lets take your lending your friend $100 and make it BC...
You lend your friend 100 BC and he buys 100 kg of potatoes, since there are no more BC being made, and in the course of the year more products are available in BC the value of BC increases. When you receive your payment on your 0 interest loan and find that you can buy 110 kg of potatoes what is your position?
Did you break some moral code, because you did just reap a 10% interest?
How do you explain that this managed to happen without inflation?
Are you morally required to return to your friend 10 BC or 10kg of Potato?
Interest naturally occurs, it is caused by time preference, that is, people prefer goods now to the future, and there is a real gain, interest, when one goes in the business of trading goods now for goods in the future...
5. Without government to protect the monopoly, nothing stops others from getting into the business that the monopoly is in, and cutting the market share of the monopoly. If you claim that people who have a monopoly would incur the costs of securing it through coercive means, well then you do not understand that this costs money and therefore is an unsustainable business model. Much like Americans that think going to war across the globe is a good idea, they do not understand there is a price tag on this behavior, mainly because they are not paying it directly...
6. What you are forgetting about the money commodity is without legislation making it the only one, it is a substitutable commodity, there are many commodities that can be used for money, and as such it has a very elastic demand curve. This means that supply has almost no bearing on the value of the bitcoin commodity, because people can freely move to another that can completely replace bitcoin for themselves, the value is based on demand, and that demand is based on commodity exchanges available to bitcoin...