Re: Bitcoin's 'limted' supply lie

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?

Assuming their promise was credible (which is an insane assumption but for the sake of argument), yes! It would be as good as sound money. Divisibility makes absolutely no difference. Your 0.008 megadollars still represent a certain slice of the pie, no matter how finely you subdivide that slice.

Regardless of the valuation of each megadollar? Let's say each megadollar was equal to 1 trillion USD? Still sound?

Dude think about it this way: there are 10 equal shareholders of a company, if no new shares are handed then it doesn't matter if the 9 other share holders split their shares with their friends and whoever - you will still own the same portion of the total pie (this is bitcoin). However if new shares were created out of thin air and given to people so that now there is 20 people equally sharing that same pie - then now your share of the total pie has been diluted and what you own has decreased (this is the fiat system).