I do not get/believe in this screwed up logic - that bitUSD creates inflation...
Is buying shoes creates inflation?
Does having more shoes in existence creates inflation? If it does I give up here, but bitUSD is still less inflationary than your inflation producing shoes...
To buy 1 bitUSD you need 1 USD... when you have your 1 bitUSD someone else has an obligation to purchase 1 bitUSD.
So even if more shoes (aka bitUSD) exist and you find this highly inflationary, those extra shoes have buyer for them... better yet, buyer that will be forced to buy them shoes back...
Creating shoes would create an inflation in the shoe supply, causing every shoe to be worth a tiny bit less.
Buying shoes and consuming them does the opposite.
But usually we only speak of inflation in terms of money.
Creating $1M bitUSD has a similar effect to inflating the supply of USD by $1M.
Creating 1000 oz worth of bitGOLD has a similar effect of increasing the gold supply by 1000 oz, which is also a similar effect to creating a comex paper gold contract for 1000 oz of gold. (The gold bugs complain about this constantly - there is all this 'paper gold').
We are also creating 'paper Gold/USD/etc'.
That said, here are two qualifying factors:
1) The amount of bitAssets that exist is currently nothing in comparison to their pegged items, so they have essentially zero effect right now. Bitsahres would have to become HUGE before it would have any impact at all in this way.
2) All bitAssets are also destroyed within 30 days be a corresponding close short order. This act has the opposite effect and removes the inflationary impact.
3) Their is a limit to how much inflation we can cause, which is about 1/3 of the BTS market cap, in total to all assets.