"A currency that doesn't grow will be naturally replaced by one that does." seems right, as long as the minimal discrete value of the currency that doesn't grow cause a problem for the economy.
But if you can move from discrete to continuous space (bitcoins can be cut up to 1E-8, and according to what I've read this is not a fixed limit), why bother moving to the other currency ?
(I hope I get it right - it's an area I don't fully understand)
yes, bitcoins in theory can be infinitely divided. classical observations about hoarding and "bad currency driving out the good" likely don't apply. if you want to spend, you just spend however little you want to spend.
But if you can move from discrete to continuous space (bitcoins can be cut up to 1E-8, and according to what I've read this is not a fixed limit), why bother moving to the other currency ?
(I hope I get it right - it's an area I don't fully understand)