Guess i’ve never fully understood the beauty of limited supply currencies

I’m probably repeating what has already been said for years (and might be wrong) but feel like I just had an epiphany in reference to infinite printing vs infinitely divisible. I’ve always understood limited supply as good since your currency (bitcoin) would gain value over time but never really thought entirely about “bitcoinization”.

In a hypothetical world where the only currency is bitcoin, you would assume the value of the bitcoin goes up over time as it is limited. If everyone’s paychecks are paid out in bitcoin, wouldn’t their paychecks get smaller over time as the value of bitcoin increases? Even though it’s getting smaller, their purchasing power only increases. Wouldn’t the cost of goods and services decrease proportionally to the increase in value of bitcoin. You would gain purchasing power over time, not lose it.

I know a deflationary currency can lead to deflation, but wouldn’t the economy continue to function as people would have to spend bitcoin to purchase essentials? Wouldn’t this also prevent over consumption from individuals since they would truly think about the pros and cons of saving their bitcoin which goes up in value or purchasing the item they feel like they actually need? I feel like basic human nature would still lead to individuals making status symbol purchases (i.e. watches, cars, etc.) and the need to survive would still lead to bitcoin being spent.

If you can’t afford something now, you could wait. If you are looking to escape poverty, you could wait.

Am I wrong or is this almost a perfect currency?