> Any artificially-induced inflation of the money supply is economically destructive, promoting malinvestment and waste.
I'd love to see your sources there, because I don't agree. Inflation plays important roles like pushing for allocation of capital. Inflation only matters if you hold dollar bills under your mattress. Once you invest it in anything, including real estate or a savings account, the effect is decimated, or reduced below zero.
> Inflation does have an important role in the economy. When it happens naturally it tells investors that we are in desperate need of more capital investment.
What is "natural inflation" in Bitcoin? Does it naturally sprout more coins in steady state? Or are you suggesting velocity of money in a currency unable to respond to externalities should suffice?
[1] https://static1.squarespace.com/static/5d580747908cdc0001e67...
Any artificially-induced inflation of the money supply is economically destructive, promoting malinvestment and waste. Some inflation in the beginning is inevitable, of course—you have to start from somewhere—but it's a very good thing that Bitcoin will have an supply inflation rate on par with, or lower than, most national currencies before it becomes prevalent enough to significantly influence pricing in the investment markets.
Inflation does have an important role in the economy. When it happens naturally it tells investors that we are in desperate need of more capital investment, and it basically doesn't matter what kind of ROI can be expected as long as it's at least somewhat positive. The issue is that this same investment behavior readily leads to diverting resources from more productive investments to less productive ones when the economy should be deflationary (indicating a positive average expected ROI) but the money supply is manipulated to make it look like there is a shortage of capital.