“The Fatal Flaw in Using Bitcoin as a Currency”:
The value of any currency never depends on rigid control of money supply. The most basic economics textbook will tell you that any value depends on the balance of supply and demand. To ignore money demand is to court disaster — because the demand for money is not stable.
The original issuers of paper currency understood the importance of money demand. In 10th century China, paper currency was introduced with a simultaneous legal requirement that taxes to the government be paid in paper. This immediately created a demand for paper currency alongside its supply, which gave it value. As long as the supply of and demand for paper money were balanced, value was maintained. When demand for the new paper currency fell short of what the government chose to supply, inflation and hyperinflation were the inevitable result.
This lack of an automatic demand for crypto is a problem, but not the fatal flaw which prevents crypto acting as a currency. The flaw is that bitcoin supply can only rise, not fall.