And we already know how that works: Value of the currency rises (other goods drop) to the point where the economy cannot sustain it any longer, then a depression follows as correction, and then it starts again. In the process, more and more assets are transferred to the money power.
A scenario which closely resembles the bubbles we see in modern currencies.
I am uncertain. There is a part of me which imagines that the current system also provides advantages to the money power, via access to the mechanism by which money is created. And these advantages are removed in a system where anyone can become a transaction signatory, given a landlord who pays utilities.
The other side of the coin, however, is that, if Bitcoin is truly an "experiment", then people ought to be willing to learn from it. If your proposed scenario is truly how things go, then I should hope that, once the story starts to play out in our economy, people will be wise enough to notice, and will react by creating another blockchain that has more Keynesian properties - leveling out to, say, a one percent expansion per year, rather than zero.