It is true, the more "dollar" notes in circulation, electronic or otherwise, the more of them it takes to buy anything. The reason this happens is simple, if there are more available, their realative value to the things they can buy decreases. So market players like sellers of goods will raise their prices to capture more of the available currency.

In a sound money system, using tangible intrinsic value money like gold or silver or beans, the tendency in the market is to lower prices rather than raise them. The reason is the relatively fixed amount of currency in the system is buying larger and larger amounts of labor and newly produced goods. This allows tangible money saved, even saved under the mattress, to gain in value the longer it is kept.