- until an amount in your possession has been spent, you can avoid that anyone knows who the corresponding BTC belong to (= you) by just using a new address when receiving the coins. Public knowledge about "having possessed coins" is only after a transaction and only if the random guy new that at least one of the last sources belonged to you.

- when you send BTC somewhere, nobody knows if these still belong to you if all outgoing amounts are sent to new addresses.

- There are "mixing services" that intend to "mix" amounts of several addresses, so traceability can be mitigated but IMO people have mixed feelings about them.

- There might be legal issues in case traceability becomes much better. E.g., coins might be blacklisted because they were gained illegally. Since you can trace those coins, it could be legally possible (though technically challenging) to "forbid" these coins and accuse of money laundering whoever accepted them anyway.

- There are other coins that are more concerned with this, I think monero (See sibling comment) is the most popular. You can always check what the dark market accepts to see what's good for you :)

- Finally, one mitigation is to keep only small amounts in many addresses, so all your counterparties only know a subbranch of your "transaction DAG" ("directed acyclic graph").

My own take is that all this means that nobody can ever track with certainty how much you have, only your "turnover". This holds as long as your counterparties (e.g., exchanges or employer) are not compromised and sufficiently well intended.

If prices deflate 5%, a worker can buy 5% more of his salary, making him effectively richer (ceteris paribus). There is no need for savings, future income is sufficient.

Secondary effects like unemployment are likely to occur but still you'd need to show that 5% of deflation cause 5% workers dismissed so that the net effect is the same. If only 3% of the workforce are dismissed, the poorer got effectively richer.

Tech products have been deflating constantly, yet no one stopped buying them (to the contrary, they got cheap enough so that a lot of people were able to buy them, think smartphones).

So you might not agree with me on a general rule but bear in mind deflation has positive effects. All innovation causes deflation.