If I don't know what I'm talking about then every monetary reformist and every government and most economists on the planet are wrong and you are right. The money supply has to keep parity with goods if you have more goods and services then you need more money or the goods and services have to become cheaper through better manufacturing techniques but, the money has to keep parity in terms of prices as the goods other wise it  results in inflation or deflation depending on the miss match.

Remember the question that bitcoin becomes a major world currency not replace the major world currency!

I live in the real world and if your system is so great then all we need do is spit our currencies and hey presto no more deficits. I'd better get on he phone and tell the worlds leaders you've solved the problem.