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Whether or not the goods to be bought are less valuable or not, but that is the main purpose why Bitcoin was created,
so that transactions with Bitcoin will be achieved and Bitcoin becomes a Digital payment that can encompass everything without intervention from parties such as the government.
But now adoption has not fully occurred and Bitcoin is still a speculative asset and mostly a commodity that is only traded and will only be sold when the price reaches the highest price.
If everyone holding Bitcoin doesn't make any moves, Bitcoin really isn't being used properly.
However, it will also reduce the circulation of Bitcoin and the price will also become more expensive.
You are correct in that Bitcoin was created as a peer to peer payment system, but history has proven that humans tend to treat scarce resources as a different type. Look how gold once money was, but the more money people had the more people began to store it rather than spend it, and fiat had replaced daily transactions. Bitcoin appears to be going the same way. What most individuals are practically doing is to use fiat in their day to day activities and invest Bitcoin as a long term store of value. Bitcoin may remain money, but you cannot get people to spend it so easily as long as scarcity continues to push the demand.