> So you are saying there would be a limited resource becoming exponentialy more expensive over time?

I'm not saying it. It is literally what Bitcoin is, and other deflationary "currencies".

> And mayhaps in that case the holders might decide to exchange it for some other assets they desire?

Keyword is "some".

In 2010 when bitcoin was novelty and had no value at all, someone paid 10 000 (yes, that's ten thousand) bitcoins for two pizzas. Now imagine bitcoin becomes a currency, as some cryptobros still prophesize. You have a constant pool of money for all "assets", and no way to get more money.