Bitcoin will not be a source of increased inflation. Because if countrymen wish to buy bitcoin; they will have to pay the fiat currency of their cournty. So the fiat currency will be pushed out of the circulation. So there will be shortage of currency.
Ultimate effect of decreased currency will be less purchasing power of the people of that particular country. So with the decrease in purchasing demand of goods and services will decrease ultimately this step will be deflationary not inflationary;
Hope the concept is clear
Above statement given on the basis that most of the people in most of the countries are buying as instrument of investment not as currency to buy goods and services.
I agree with you. I also think that bitcoin will allow many people to earn money and stop being poor. so it is not beneficial to the country's leadership. This is the reason why many states prohibit it