Note the OP edit:
I presume it is of interest to reply here on the deflationary point.
It is ultimately deflationary (i.e. the money supply shrinks later) so that is even better for investors than the 21 million coins limit.
A deflationary, perpetually-divisible unit is exactly what's necessary for both hodlers and adopters. Ripple had an interesting take.
Some argue that deflationary is bad because the capitalist can just sit on their capital and not invest it. But the capitalist who is investing
doesn't want the ecosystem growth to be siphoned off to who ever is receiving the minted coins. And the capitalist is competing against their cohorts who invest and amplify their relative gains. We must distinguish between a consistent and low-level of deflation from a debt-deflation Minsky Moment implosion:
When prices drop on everything, consumers and businesses start to pull back on spending, waiting for even lower prices.
Although in a
time-cost-of-money analysis, loans are hypothetically viable in deflation, with a decentralized blockchain then loans can't be backstopped by a central bank with a senioriage monopoly thus making loans unscalable to the large economies-of-scale indebtedness of our current fateful juncture in history. So funding would shift more to investment and crowdfunding, which
I think is precisely where our knowledge age economy is headed.
I think it is important to understand that deflation just doesn't work in an economy of
fungible workers, but
that economy is archaic and going away. See the follow criticism for why deflation wouldn't work with the archaic debt-based democracies and fungible industrial age laborers and merchants:
Once begun, deflation can weaken an already tottering economy in three ways. First, because the wealthy save more of their incomes than the middle classes, a redistribution from borrowers to lenders in itself depresses spending. Second, deflation encourages people to postpone large purchases in anticipation of lower prices in the future. Third, when prices are falling, money grows in value even when it sits around a shoebox or a zero-interest checking account. Hence, pools of saving are less likely to find their way into the financial markets where they can be borrowed and spent. All of this can exacerbate an economic downturn and, in turn, generate greater deflationary pressures.