>> An inflating currency would never catch on. It's a hot potato situation of "I don't actually want to own it because it's decreasing in value. If I do have some, I want to dump it on the next sucker as fast as possible to minimize my losses."

That sounds like a great currency. Not a great asset, or investment, but a great currency, one that is useful as a medium of exchange, not something people can just sit on and expect to get rich from.