This has been debated to death, but perhaps re-framing the argument might show how hollow Bitcoin's scarcity argument is.
Bitcoin cultist's claim one of its greatest virtues is that the supply of Bitcoins is limited to 21 million, but of course if Bitcoin was ever to become the global default currency its promulgators dream about, each Bitcoin would denominationally represent a huge USD equivalent. To this end, if the US treasury said that it was restructuring the USD such that there would be 21 million MegaDollars maximum, but that each of those MegaDollars could be dived up to infinity, does it suddenly become sound money?
Yes it does. Because if the U.S. treasury decides this, who effectively gets all the new units (the microDollars or picoDollars) that are introduced by dividing MegaDollars?
Compare this to: who gets all the new money that is introduced when the FED prints yet another $150 billion?
In case you still don't see the point, let me spell it out for you:
Dividing existing money into smaller units = new money gets evenly distributed amongst everybody who already owned money before. If you owned 0.00x% of the wealth before, you still do now, excepts it is worth a bit more. Seems fair to me.
Printing new money = only FED and banks get the new money, at the expense of the rest of society (as our existing dollars become less valuable). If you owned 0.00x% of the wealth before, you no longer do now, and it's worth less. SUCKS.
