That distinction is irrelevant. Decentralized or not, Bitcoin is an inherently deflationary currency, and deflationary currencies are bad for the reasons you can see by observing Japan. Deflationary currencies create an extreme incentive to save, since your money will be worth more tomorrow than it is today, which suppresses what really makes an economy move: spending and investing. Whether it's centralized bank policy or an algorithm that causes the deflation is an irrelevant distinction.

The idea that money has intrinsic value or should have intrinsic value is poisonous. Money is just a proxy for goods and services, and the only point of money is to facilitate getting everyone to engage in productive activity. Encouraging people to park money in a digital wallet because it will be worth more tomorrow is the last thing you want.

Japan's famous savings rate was actually one of the causes of its problems in the last couple of decades: http://aparc.stanford.edu/research/causes_of_japans_economic... ("Surplus in Savings: Japan has traditionally enjoyed an unusually high savings rate and a comparatively low consumption rate. During the decades of recovery and high-speed growth, this 'savings surplus' supplied sorely needed capital to private industry in the form of bank loans. This money was used to build and expand Japan's industrial infrastructure and to achieve the rank of a world-class manufacturing power. However, during the 1990s, the 'savings surplus', once the indispensable fuel for high-speed growth, became a serious, structural impediment, leading to a severe slump in demand and causing a heavy drag on Japan's economic recovery.")