Haha you're literally wrong in every counterargument you presented. Moneros supply is deflationary as tail emission tends to 0 asymptotically as supply increases, tail emission both increases usage and decentralization by incentivizing mining. Even today Monero's inflation rate is less than gold and drops every year, combine that with lost keys and you have a money harder than any physical money known to man. Larger blocks don't impact decentralization as the Monero blockchain is still less than half the size of Bitcoins and storage is the cheapest aspect of node running.
Bitcoin is becoming more custodial increasing fractional reserve lending and loan products, both are Fiat instruments. That's not fiat being absorbed into Bitcoin, it's Bitcoins value proposition of self custodial hard money being diluted by Fiat. Monero is nearly untraceable now and becomes completely untraceable after FCMP++ next year. Bitcoin is 100% traceable even if HODLing due to the open ledger. Coinjoin implementations only create extra plausible deniability and are instantly defeated if an accidental cospend occurs. Even spending Monero offers more privacy than HODLing non KYC Bitcoin.
