Bitcoins and the basis bitcoins is not something society can deal with effectively. One of the main problems with gold was its inability to be a useful policy instrument to stabilise economic expansion. With gold it was boom then bust. The boom was usually overdone and the bust was extraordinarily cruel. Monetary management by central banks has the notion of a social contract built in.
What has happened has happened because of lax rules at the Fed and was very regrettable in that the social contract was irreparably rift. Such harm from government sources is completely intolerable hence the fear and flight to older systems such as gold and bitcoin that are completely useless as a social contract.
It's far better to have an independent monetary authority that is smart enough to realise that inflation and deflation are inherently bad and socially destructive.
We need an inflation index that takes housing costs into account (long term inflation). Money supply needs to be predominately contained in savings for the future hence the need for interest rate hikes to stem inflationary pressures.
