[koheripbal]

> A credit system probably wouldn't work however as we're destroyed the concept of time value of money.

This is spot on and is the main problem. This destroys all lending, which prevents various forms of capital investment - the cornerstone of economic growth.

Like it or not, inflation is a key component to any currency. ...and as you said, increasing the money supply doesn't even guarentee inflation - but contracting it absolutely spells deflation - which is death.

Ideally a "better" cryptocurrency would detect the velocity of money within its own blockchain, and calculate the appropriate amount of inflation (or even deflation) to keep the scarcity of currency stable.

If you imagine that a currency is like blood in a body, then as the body grows (or shrinks), the blood volume must adjust accordingly. Fundamentally, the function of currency is not to save - it is to spend.