If bitcoins are unregulated, this means that bitcoins are constantly circulating right? It's not like government money that is constantly tossed while new crisp bills are being made. Eventually this means that there will be so many bitcoins as they get mined that a single bitcoin will have nearly no value, right? Or am I missing something?
You're missing the cap of 21 million. Eventually 1 BTC will be worth thousands if not millions of dollars. When the cap is reached most transactions are going to be in very small fractions. This is assuming that it continues to grow and expand, however. Also, while bitcoins are continuously mined, it gets harder and harder to mine as time goes on, leading to them being distributed slower and slower until the 21 million mark is reached. Because of this, bitcoins should be heavily deflated by the end as opposed to inflated.