[Amincd]

The quantity of money does not affect its flow.

It's not like exchange particles, where lower densities leads to lower transfer of force. Any quantity of money, as long as it is divisible, can attain a sufficient value to be useful as a store of value. A medium of exchange merely needs to be a store of value.

Because of the lack of dependence of the value of the total money supply on its total quantity, nominal spending declining due to deflation does not reduce real spending and the market is always able to sell of the merchandise on the shelves, with the value of currency adjusting to what is needed to serve the role of store of value in exchange.

What deflation does do is discourage lending. This is a legitimate economic problem, but it's not that pronounced. The Bitcoin economy would have 3% deflation a year if the world adopted it. This is not drastic and would still allow significant lending.