First lets establish some facts and look at things a different way.   

1) There are (CURRENTLY) only 23,000,000 bit coins.  Most are held in a virtual account and used to purchase processing power to keep the system going for the next 100 years.  Identical to a VERY RICH MAN paying out his living expenses slowly with gold from his vault.   

 Think of these 23,000,000 as shares in a company we call "the economy" which generates profit in terms of real goods and services.  If the company is successful it "pays dividends" each "owner" gets more goods and services. 

2) Each of us owns a percent of the total coins that we traded real value to get. 
3) Monetary inflation (increasing the coin count beyond 23,000,000) steals ownership from those who have coins and GIVES IT to someone else.  Everyone still owns a percent of a whole.  SO WHO IS THIS SOMEONE and WHY THEM?

4) Monetary deflation (lost coins) results in the "purchasing power or percent ownership" of those coins being redistributed to all other owners.  Thus lost coins is good for all coin holders but the individual who lost the coins.  VALUE is not destroyed by coins being lost because there are still just as many goods and services in the economy.

5) If you "must" increase the money supply then it should be done according to a "stock split" where each user is given 2 for 1 or  1.05 for 1 ever year.  Net result is that everyones "percent ownership" stays the same and you achieve "price stability".   But the economic effect would be the same as price deflation under a fixed money supply.  There is a natural mental flaw that most people (and monkeys) suffer from where the perception of 4 pennies as being better than 1 nickel seems to make sense, combined with the physiological impact of taking a nominal pay cut even though it entitles you to more goods and services than before.


The #1 question that monetary inflationists must answer is by what moral ground can any individual or group choose to reallocate shares of wealth?   If you create new coins "from nothing" who gets the goods that are purchased with those new coins? 

Monetary deflation is only a problem in a banking system where new money is created from credit and the math requires an increasing number of loans to pay interest or else someone must default.   It is perfectly stable when money is not debt and its existence does not depend upon paying someone interest.