I don't really see it. I understand what you mean, it just doesn't hold water to me.

Is the Dollar less valuable (ignoring that it is ultimately worth 0 for a minute) because people use Yen in Japan? Yes, actually, if people used Dollars in Japan it would be more expensive because of demand. But that doesn't mean it is undervalued. That means organic demand sets it's price (to the degree that can be true with a fiat currency). A money that has artificially created demand is overvalued.

And that's all it is, price discovery. Demand for Bitcoin will be what it will be, demand for whatever else will be what it will be. Refusing to use things that are useful in your life reduces value to you, and hoping that people choose to do that is a futile endeavor. It's not having your cake and eating it too, its using what's available to you as needed. We should do that. I shouldn't force myself to live with negatives I don't like. It's my capital. There's nothing virtuous about hamstringing yourself.