It works because people value goods they can get with their coins more than the appreciating value of coins in the future. The problem everyone is having is no

It works because people value goods they can get with their coins more than the appreciating value of coins in the future. The problem everyone is having is not about coins being used for exchange - any money will provoke people to spend it on the things they value more than the money itself - but on how a deflating currency makes investment less prominent because it requires even higher returns than the rate of the currency appreciating value.