One would think the monetary experts who seek to induce inflation had some perverse intent. On the contrary, inflation is a crucial benefit of fiat currency, perhaps its most important feature. Any currency that does not suffer inflation will not be money. It may be an asset, but it will never be money.

So, here's a short list of reasons why modest, predictable inflation (the only kind the authorities seek) is a good idea.

1. Inflation causes the proceeds of a sale to be redeployed to purchase goods or services, including capital assets. (So, no, it does not discourage "saving," only hoarding of money in a mattress.) In a barter economy, where demand is how we live, a policy that tilts toward spending is a positive force.

2. Inflation accelerates amortization. Predictable inflation is priced into the discount/interest rate inherent in financial transactions, most notably loans. The result is that interest-only loans actually amortize in real terms, and installment loans amortize faster than their nominal schedules suggest. No one "loses," because the rates are negotiated with predictable inflation in mind. But, because the loans amortize more rapidly, they are safer to make, which makes credit cheaper, which makes the economy hum.

3. Under inflation, collateral increases in value as the underwriting data on which the loan was based ages. Again, inflation makes lending safer, so cheaper.

Bitcoin offers none of those advantages. That's why it's never going to be money.