Better bitcoin system should have some sane non-libertarian economics behind it.
It should be engineered to have steady inflation that is slightly higher than most common currencies. 4-5% for example.
This would discourage hoarding and increase velocity of money. Good money should not be investment asset or speculation asset. It should be something used for transactions between assets.
The thing is... why would any reasonable individual use a currency with inflation when they can use an equivalent currency with deflation? Governments can force inflation on people - cryptocurrencies have no ability to force anyone to use them.
Governments can only force inflation of the currency, not of all assets. That helps to keep value in investments that pay a return and increase real value to society over holding currency which doesn't.
Or you could say why would any reasonable individual use a currency with built-in boom-bust cycles when they can use an equivalent currency with reasonably stable value?
Given the choice between bitcoin and what you have suggested (a money that is engineered to lose value over time), any sane person would choose bitcoin. Regardless of whether or not you believe that everyone using an inflationary currency is Pareto optimal (I do not), it is not a stable equilibrium. On the other hand, people using an appreciating asset like Bitcoin forms a Nash equilibrium.
The only reason people use inflationary fiat money is that A) it was by far the most convenient thing before Bitcoin (and still is, depending on your use case), B) it has a decent track record for stability, and C) most governments aggressively attack private monies with good monetary properties, often in the name of anti money laundering. More Machiavellian motivations include that governments don't want to lose seigniorage power or control over monetary policy.
It should be engineered to have steady inflation that is slightly higher than most common currencies. 4-5% for example.
This would discourage hoarding and increase velocity of money. Good money should not be investment asset or speculation asset. It should be something used for transactions between assets.