For anyone else who might also have this concept dreadfully confused...
If you want to say that 'inflation' (new money created), steals value from the money already in existence, then you have to ASSUME EVERYTHING ANYTHING EVER is a CONSTANT. Even if you make such a mindless approach, then still the total marketcap would be a constant, which is obviously proven otherwise.
[facepalm] Either I am talking to someone who hasn't grasped that "driving at 60 miles per hours" doesn't mean one has to drive at a CONSTANT speed, or I have wasted time trying to wake up someone pretending to sleep.