Absolutely !

A few years ago, before he became the most important finance minister in the world, Yanis Varoufakis used to blog on economics stuff. He did quite a bit of commentary on cryptocurrencies back in his day as a blogger and knew all about Bitcoin, Litecoin and whotnot.

His main complaint about crypto going "mainstream" was that it was "deflationary". Here he is over 2 years ago discussing the rise of Litecoin: https://www.youtube.com/watch?v=JLu1yAeWNtw

But I found this argument a bit strange considering he's so comfortable about making the distinction between "solvency" and "liquidity" in his current area of responsibility.

If a fixed supply monetary medium exists that works and retains its value over time, then societies have always found ways to satisfy the requirement for liquidity. For example, even in the fiat system, the base money supply issued by central banks is fairly static in the abscence of QE (which is an 'emergency' measure). At best it's no more inflationary than a regular crypto's emission curve like bitcoin's. Meanwhile however, the commercial banking sector levers that base money supply as credit money in response to aggregate demand using the fractional reserve system which helps to keep prices stable.

It's no problem at all to discover equivalent mechanisms in crypto which satisfy this need. For example, take BitUSD - it does exactly that in a very elegant, decentralised way.

So "deflationary" isn't the problem - or at least it's the problem we "want to have" because if a monetary medium is deflationary it must mean it's accruing in value in which case we've got something we can work with !