Quantity theory of Money and Bitcoin

Quantity theory of money goes like this:

MV = PY,

,where

M = Money: How many $ is circulating.

V = Velocity: How many times M is used in a year.

P = Price Level (price index, such as CPI)

Y = real GDP

This implies at least one of three has to happen, when more money (US$) is printed.

1. Velocity goes down. The economy money more quickly
2. Price goes up. Inflation.
3. real GDP goes up: Produce more.

Can we replace money (US$) with Bitcoin? (When a new bitcoin is mined, 1, 2 or 3 must happen.

Or, It would be M = ($US in printed) + (Bitcoin mined)

or something else?

I am thinking for the quantity theory of miney to work for Bitcoin (replacing US$ with BTC), Bitcoin needs to be more widely accepted medium of exchange than US$. Until that happen, I am not convinced bitcoin is a deflationary money. (I am not sure if bitcoin is money, but let's set that argument aside)