Quote from: r0ach on April 20, 2016, 12:21:43 AM

The amount of inflation you can slop onto a system before it compromises my above statement is far too arbitrary and unknown

So is the unknown of China's pools controlling 67% of Bitcoin's hashrate, and the potential of the Bitcoin money supply not only inflating like crazy the past years, but inflating more than the originally promised 21 million coin limit.

Also the tail reward is usually designed to be much smaller than initial distribution, so if you are worried about inflation, you should be really worried now. If the tail reward is less than the population and economic growth rates, then it is still deflationary.

Additionally if Bitcoin has no tail reward and due to the Tragedy of the Commons (if it remains decentralized) then transaction fees decline to costs, then it becomes a permissioned block chain as you alleged with no circulating coins passing back through mining.

I'll make these points much more well explained and convincing in a future white paper.