It would be easy to create a Bitcoin-like cryptocurrency that is not deflationary. You could make it issue new coins at a fixed rate or at an increasing rate.
(With cryptocurrencies, you can't change the rate new coins are issued, for example in response to the currency's buying power. Central banks do that with fiat currencies, to keep the currency's buying power reasonably constant, or to affect it as they see fit.)
I don't think deflation is enough to stimulate an economy; you need demand, by which I mean taxes! You must pay taxes with a particular fiat currency, so everybody in your jurisdiction needs some of that fiat currency, which makes it valuable.
If there was a jurisdiction where people could choose to pay their taxes in fiat or cryptocoin, both would be equally useful. The exchange rate would be governed by the tax prices.
Basically, if Estonia decides that Estonians will be able to pay their taxes in estcoin for the foreseeable future, at a rate of 1 estcoin = 0.01 euro, then 1 estcoin quickly becomes worth 0.01 euro.
(With cryptocurrencies, you can't change the rate new coins are issued, for example in response to the currency's buying power. Central banks do that with fiat currencies, to keep the currency's buying power reasonably constant, or to affect it as they see fit.)
I don't think deflation is enough to stimulate an economy; you need demand, by which I mean taxes! You must pay taxes with a particular fiat currency, so everybody in your jurisdiction needs some of that fiat currency, which makes it valuable.
If there was a jurisdiction where people could choose to pay their taxes in fiat or cryptocoin, both would be equally useful. The exchange rate would be governed by the tax prices.
Basically, if Estonia decides that Estonians will be able to pay their taxes in estcoin for the foreseeable future, at a rate of 1 estcoin = 0.01 euro, then 1 estcoin quickly becomes worth 0.01 euro.