I understand that if you add enough decimal places the amount of usable units becomes infinite.

I understand as the population grows and more users are purchasing more goods that the value of the pool of Bit Coins rises as the pool of products rises despite the quantity of Bit Coins remaining the same. This means prices in Bit Coins would decrease as the relative value of the Bit Coin rises.

This means that the growth in the value of savings in Bit Coins equals the value of deflation. While the value of earnings and property remains constant due to supply and demand.

Making a loan is taking a risk that the person will not pay you back counteracted by the reward of a profit for the loan. A person loaning money will loan it for the most reward he can within his acceptable level of risk. A person borrowing money will borrow money for the lowest he can get. This is called supply and demand.

In the inflationary situation of the US Dollar, I take a loan out to purchase a house I pay back a greater number of units of currency with less valuable currency that is projected for me to pay back the value of the home(the rate of inflation) plus some reward for the risk taken by the lender(interest and fees).

On the other side of the desk if the lender does not loan out his money he will be losing value over time(The holder of dollars is punished for doing so). So he chooses to risk his money so his money will buy the same or more when he needs to use it. This is the same formula the makes fractional reserve profitable for the banks.

Bit Coin makes people with money not want to loan it out. If I am going to lose value if I hold onto it I will take a risk to maintain or grow my money. If my money grows in value I am not tempted to loan it out.

If I can hold onto my money and it grows in value naturally without risk, then any action I take with risk will require a greater profit. that means a lender is never going to make a loan for "negative interest" because he could just hold onto his money and get better returns for less risk. This means that the amount repaid in units would never be less than the amount in units of the loan. This means that you would be paying back the loan in Bit Coins worth more than the Bit Coins you borrowed. It also means your home cannot stand as collateral for the loan as the homes value remains the same while the value of the Bit Coin increases. So your home mortgage if there is not inflation in the housing market is the same as a car loan today relative to a deflating currency (underwater from day one).

Who then is going to loan a stable value for the purchase of a decreasing value only to be paid back less value than he would have if he hadn't made the loan.

This will also decrease entrepreneurship without a large profit margin as the return on investment must be larger than the rate of deflation to justify the risk taken by the venture and the difficulty of obtaining more start up capital.