Very simple rule, every time someone gets something for nothing, someone else gets nothing for something. This is redistribution. When the bankers create new money they get something for nothing, which means that somewhere someone is getting nothing for something.
This only works out in favor of the banker long term when a bank(er) is too big to fail and is bailed out buy society (the tax payers). Too big to fail is ether dumb or would (if not bailed out) show that there is already too much debt in the system - debt between banks (just aksing myself if there is a structural difference to the debt governments and private individuals have). Solution would be to either educate people better to be more cautious which bank they entrust their money to or cut the fractional reserve system (mostly).
Second inflation causes misallocation of resources and economic miscalculation by business men. This leads to destruction of wealth and losses in society which reduces the number of goods and services available and thus makes things more expensive for the poor.
Agree that too high (edited) inflation is not good for economic prosperity in general.
Massive inflation normally happens when governments accumulate to much debt und start increasing the money supply.
This government debt can be tackled by higher taxes (which mostly effect the middle and lower class; the super rich don't have an income, they have interest they get on there capital and find ways to not pay taxes as much as the average guy), economic growth and therefore higher tax income and by lowering government spending. Economic growth can not be achieved that easily when you have to save money as a government. But you can cut government spending and raise taxes which both hurts the middle class and the poor.
The other option is inflation or a debt cut (same effect) which more hurts the rich and less the poor (not not at all) because the above measures can be avoided.
The cycle of any capitalistic society, that always repeats itself, is that capital gets more and more centralized over time which in return means that debt grows equally with those that are not super rich. This debt is held by governments and by private individuals. From time to time the debt of the masses gets to big (to big in the sense of not being able to pay it back by higher taxes, cutting government spending, working harder/economic growth). The interest rates eat up all these efforts. Then inflation of some kind is inevitable and makes the field more leveled again and takes away the burden of the poor and average tax payer to work to serve the interest on the debt that the government holds for them as a whole or which they hold as private individuals. So inflation has a redistribution effect because the debt the masses have with the super rich is mostly gone.
Too tired to draw the conclusions for crypto currencies / bitshares.... Tomorrow again...