No, you increase the amount of IOU's. I own 1 bitcoin, and everybody knows I'm good for my bitcoin (e.g., that is what a bank is. An institution everybody trusts to have money and they pay their dues.)
I know write you an IOU for 1 bitcoin, and you buy a car with that IOU, because anyone who owns that IOU can come to me and get their bitcoin, and everybody knows that I am good for my money, because that is the whole condition of this thought experiment.
I now write another IOU and give to my uncle, who buys a house with it, because everybody knows I'm good for it.
Now the money supply has increased, without minting new bitcoins, and this is exactly what happened to gold (which, as you know as well as anybody, you can't just print)
I know write you an IOU for 1 bitcoin, and you buy a car with that IOU, because anyone who owns that IOU can come to me and get their bitcoin, and everybody knows that I am good for my money, because that is the whole condition of this thought experiment.
I now write another IOU and give to my uncle, who buys a house with it, because everybody knows I'm good for it.
Now the money supply has increased, without minting new bitcoins, and this is exactly what happened to gold (which, as you know as well as anybody, you can't just print)