I have been learning about how central banks usually target 2% inflation for economic growth. Still, Bitcoin has a fixed supply and can even become deflationary over time if people lose access to their wallets.
So I'm interested to know about a few things;

 Can Bitcoin work well in a deflationary environment where the value keeps rising and people prefer to save rather than spend?

Would an economy based on Bitcoin slow down because people won’t want to spend their BTC?

 Or would it encourage smarter spending and long-term thinking instead of constant consumption?

I’m just trying to understand if Bitcoin can really replace fiat money while keeping an economy active, especially since deflation is usually seen as a risk in traditional systems.