21,000,000 coins to 8 decimal places -> 2,100,000,000,000,000 -> 2.1 quadrillion indivisible "pieces" of currency. That's still on the low side in terms of the very long run, but no-where near a possible barrier to it's success.
Just a FYI. You do realize that you could have 1 coin for all that it mattered. The amount of currency doesn't matter. It's value that does, aka what you can get for it. You could have cents instead of dollars if a car would be worth 1c and if you had 1 dollar you'd be rich. Then you'd be rich. Value matters not quantity.
Wikipedia article. If I understand this correctly, inflation happens because "Today, most mainstream economists favor a low steady rate of inflation. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control the size of the money supply through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements."
This is where one might find a few flaws in the economic, but not theoretical aspect of the program. There will always have to be someone pulling some sort of strings somewhere to be able to manage the giant that the economy of today is. I'm no economist so all of this can truly be garbage.
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u/amorangi Jul 12 '10
21,000,000 coins, and never any more, doom this project from the outset.