It will be interesting to see how this works out in the long term. Although there is an upper limit on the number of bitcoins, there can be a potentially unlimited number of alternate cryptocoins. So while bitcoin would be deflationary by itself, we could potentially see a form of inflation in which alternate cryptocurrencies become popular, causing bitcoin's fraction of the total cryptocurrency market to decline over time.
This all depends on the number of alternate cryptocoins that eventually become popular, which I don't think is possible to reliably predict. In ten years from now, we could have any of the following for example:
- Only bitcoin is popular.
- Only bitcoin and litecoin are popular.
- Bitcoin is still around but now only represents a small share of the cryptocurrency market.
- Bitcoin no longer exists and some other cryptocurrency(s) are used instead.
- Something else?