Unless you're saying that you can split 1 bitcoin into 2 bitcoins, I think your reasoning is flawed.
Or looking at it another way, inventing a new denomination like a millicent (= 0.001c) will automatically increase our money supply...
Or looking at it another way, inventing a new denomination like a millicent (= 0.001c) will automatically increase our money supply...
But the scenario you're citing isn't the central issue when it comes to deflation. Deflation leads to a negative spiral because it pays off to defer any kind of spending - thereby slamming on the economic brakes. Notable example is Japan in 90s - deflation has been a major factor in its meagre growth then and even into the 2000s. The BoJ's unwillingness to adopt a sufficiently expansionary monetary policy likely exacerbated the problem