The currently will have constant inflation
There is no point in a constant and 100% predictable inflation. Every hour (or even second) the price of goods and services will have to be changed accordingly! Is that what you want? A madhouse?
this will encourage people to spend their coins rather than holding them back
Complete nonsense. This will encourage people to spend their coins for real money like gold and silver. Because real money doesn't inflate!
Agree, Gresham's law will take effect.