Can you really envision a world where everyone meaning 100% of participants think something will only go up in value? I sure can't.. And that's why it's a fallacy.
I think most people believe oil will just continue to go up in value. The same could be said for uranium and other non-renewable resources that are consumed (gold and silver doesn't count).
Gold, silver, bitcoins, etc aren't really consumed, so even though they follow the same extraction curve as oil, their price floats based upon the whims of speculators.
Actually, Bitcoins are very much "consumed" in the sense that, over time, the total number will drop due to things like hard drive crashes and so on. In fact, it is quite likely that of the 8 million plus BTC mined so far, a fairly good number were lost in the early days. People weren't taking much care of them then, drives crashed, flash drives got lost and so on.
The rate of consumption is slow, and I don't agree with the writer who said it will ultimately reduce to zero (if we as a species can keep alive the Spanish Flu virus, we sure as shit can keep a few BTC safely guarded), plus the mining curve is asymptotic, so there will always be one more bitcoin to be mined. But they're certainly consumed.