im really missing where this can gain value. Why would anyone pay over .001 if that is where the price is constantly set?
Please read
https://bitcointalk.org/index.php?topic=471166.msg5342870#msg5342870 and the Ann.
Ultra short is that 0.001 supply is limited, once it's gone it's gone. Additionally once a week the supply is cut for a day, Insanity Sunday, where all BTC from purchases goes back in to market, see the results of yesterday's here:
https://bitcointalk.org/index.php?topic=471166.msg5323853#msg5323853The after 9 weeks model is something that remains to be seen, but it could easily move to a different core model where there was a tiny block reward, or tx fee cut or increase, or at week 5 we could decide as a community to start raising supply cost, or wipe out 25% of the supply, or, or.. for now let's keep the current set up and see what happens.