I think you are confused about the term "inflation". When there is an inflation, the value of that item/money goes down. Or in other words, you have to pay more to get the same amount of goods. This is clearly not the case with Bitcoins.
What I think you really meant to say was: "increasing in both value and supply". And that would be right.
When there is an inflation, the value of that item/money goes down.
So when Anna Schwartz wrote her paper "Asset Price Inflation and Monetary Policy" where she talks about the "assets whose prices have escalated", she actually means the value of the assets went down? I think you've just invented new economic theory.
An asset price inflation is an escalation of their prices, much like a Bitcoin value inflation is an escalation of its value.
What I think you really meant to say was: "increasing
Why do you think the word "inflation" was chosen in the first place? What does it mean to inflating something?
What I think you really meant to say was: "increasing in both value and supply". And that would be right.