People would buy more than just bare essentials because people want things. This doesn't exist in a vacuum -- at this very moment, people are using fiat currency to buy all kinds of things they don't need instead of investing it in some kind of appreciating asset.
As there's no intrinsic value to bitcoin
There's no intrinsic value to fiat currency. I'm not sure why you keep saying this.
It was phrased as a question on purpose, to get you to think about it.
Your assertion is that no one would spend their Bitcoin on bread, and they'd instead use fiat currency. I'm asking you: why would they take their capital, regardless of what form it's in, and spend it on bread, if they knew they could hold onto that capital and it would appreciate in value?
The answer is very obvious: they need to eat.
But if they're not buying things to buy bitcoin because they want to get returns off their bitcoin
I just explained why they would buy things. I said it twice, actually.
No we aren't...
We're back to: people would spend it in order to buy things
That's mining them, not making them. The supply is hard-capped.
How do you make them?
In the short term, maybe.
But if Bitcoin is always going to go up in value, why would it make sense to spend your USDs buying goods and services instead of using them to buy Bitcoin and increasing the value of that capital?
there's not really any use cases for it outside of crime
I just listed 5...
As a general thing because I found myself trying to justify my Gear Acquisition Syndrome -- it's a good idea to split services across devices, rather than having some monolithic home server (which is where most people start). That way if one box goes down, it doesn't take down your whole stack.
If you have some machines scattered about doing different things, it might be time to consider logically grouping services and splitting them across that hardware.
I'd try putting the H2O inside that ice cold cup. You'll thank me later.
They are limited by an authority which you can trust will not try to kill it off.
So they're artificially limited, so long as that trust exists.
Sure, but that has nothing to do with what I said about them.
Again, you'll notice people are spending their capital on things they don't need all day, rather than than investing it in appreciating assets. Why are they doing that? Why would they buy things they don't need today, when they could invest in an appreciating asset and be able to afford 10 of those things tomorrow?