[derangedHorse]

> If doing nothing is more profitable than doing something then society as a whole will gravitate towards generating no economic activity.

You're operating off a false premise. Do you think all economic activity would be less profitable than the interest rate offered by deflation?

The whole point of investing in any business is to make a return. Giving businesses competition in the form of deflationary currencies will not eradicate businesses from being formed, and there's no evidence to suggest these businesses will be less profitable than holding a deflationary currency.

We see this in various cryptocurrencies claiming to be deflationary with the concept of 'yield', which shows investing to be a function of their wealth, interest, and expectation of return. Inflation does not need to be in the equation for this type of development.