Remember that bitcoin is extremely finely divisible.
Imagine there were a fixed amount of gold. As the economy grew in size, relative to the available amount of gold, gold would become more valuable relative to the various goods and services in the economy. This would drive the "price" of the gold up, and the prices of the goods and services, valued in gold, down. Price would go from grams, to milligrams, to micrograms, etc, down to the point where, eventually, people would be trading individual atoms.
Bitcoin can be divided below that "atomic" level.
What will this mean for food production, energy, welfare, wages, housing .. I mean, ye, we all know moving away from the fiat to btc is game changing. But think about how much of a game changer?
For the actual production/provision of these things, not much. Money is nothing but oil in the gears of trade. Better oil, smoother operation of the machine.
Will prices suddenly stop on some things? energy for example? how would new energy compete? by being more expensive? cheaper? would this mean that all new competition would occur by trying to be better, but a bit cheaper than the next person? How will this drive prices across the board, health, housing, wages, etc, are there things that it won't effect?
In general, prices will decrease, as valued in Bitcoin. Their real value will still be pretty much the same, but a more valuable currency means prices go down, just like a less valuable currency means prices go up.
Would competition lower and lower prices until a price for a service/item reached its possible lowest and still retain a profit, and then the only way competition would have to drive would be towards being of better quality?
Here's a secret: It does that already. Inflation masks this, somewhat, but there are industries where it remains pretty obvious. Computers, for instance.
What do you expect would retain a static price? Items that also has a cap on its limit?
Do you know of any other commodity or service which has a natural fixed limit?
