Fiat leaves the banking system == people pay their debt (which is never gonna happen)

Few understand this because it misrepresents what is going on.

When people buy Bitcoin, they shift value stored in fiat to bitcoin. The price is affected via the demand/supply forces of a free market.

While the quantity of bitcoin and fiat remain the same, the reservation demand (demand to hodl) of the two currencies shift.

explain this to me like i wear a mask outside

Right, but the effect is devaluation of the USD anyway, as you buy Bitcoin with USD, you are taking your work out of USD and putting it on Bitcoin.

Devaulation is caused by your USD returning to circulation when it would have been out of circulation if you would have saved in it.

W/ respect I thought

1- bitcoin used to not exist; so current price of bitcoin x current number = fiat that did leave the banking system

2- bitcoin is still being mined so every new bitcoin mined and sold = fiat that does leave the banking system

3- fractional reserve banking means every fiat $ leaving a bank reduced bank fiat by x10 or more? Even if the bitcoin seller gets fiat for the bitcoin, the fiat may not be re deposited into the bank, fast enough, before that fractional leverage has impact ?

I am probably in error somewhere here.

There are makers and takers, unless it's OTC.

Takers buying BTC pumps BTC and dumps the USD.

It's a flow