True, but in normal economic times, one can usually earn interest that outpaces inflation. Right now we have the federal reserve purposely punishing savers, just as freicoin would do.

I think the issue with bitcoin is that it's very very new. My guess is that it will eventually stabilize. On top of that, I hold the Rothbardian view that competing currencies are a good thing. Freicoin would only work if it had a monopoly on currency adoption.