if Bitcoin had an unlimited supply like regular Money, it would lose purchasing power and value over time
You mean "regular currency" not "regular money". Money by definition should be a store of value and fiat currencies are not money. Bitcoin is.
Though the terms here might be a simple to understand, it does come with some contradictions to me as I think the definition of what money entails isn’t limited to that. If that be the case, we wouldn’t be able to spend fiat currencies or use it in exchanges don’t you think…
When we make a purchase, what we are actively doing is exchange of values. Let’s say, an exchange of $200 USD for a Trezor Hardware wallet. We have actively transferred value from USD to a commodity the Trezor hardware wallet. In essence, the USD had value within it and can be stored.
The difference when compared with Bitcoin is that, values stored in Bitcoin has the potential to appreciate while those in the USD is subject to inflation which is deflationary.
That’s why I in someway can go with your context here since, the values in fiat money are not maintained thereby, it looses its power to buy certain commodity, like the Trezor Hardware wallet in the future where, $200 USD would loss its purchasing power.