Yes, but precious metals are ever increasing in supply, the % of the precious metal you own is always going to decrease, this is why BTC is superior to gold for an example, because we assume that the max supply will be capped by 21M, and ya of course, no fees on storage so your 1 BTC is always 1 BTC and thus the % you own is always constant (unless you decide to increase it or reduce it yourself).
Actually, most precious metals are limited. You're relating your percentage holdings to the circulation, not the total supply. Scarcity is present everywhere in the real world. Bitcoin mining is essentially mining gold, just that we are aware of the exact number. Your resources are 100% limited and there will be a day where gold cannot be found in the ground any more. That is akin to Bitcoin mining and the whole idea behind Bitcoin. That is why we call it digital gold.
you use it to buy coffee or store it for 50 years it makes no difference to the main concept of BTC.
In reality and since "good money drives bad money out of circulation", the less people spend BTC the more value they think it has, ultimately, we get to a point where nobody would want to spend dear BTC unless they are forced to, there is nothing wrong with that IMO.
It does. The whole point of its worth is because people think of it as something of use. Platinum are on catalytic converters because they are good catalysts, gold is expensive because it is used on chips and contacts, etc. Speculative assets are not currency or good store of value, and is not what P2P Electronic Cash is defined as. I certainly hope people are willing to spend Bitcoin, zero use of Bitcoin also means zero value. The value of Bitcoin is its potential to one day replace fiat, which is why companies are investing and building tech ontop of it.
That is not very accurate, your store of value will not be worth "less", you would have "less" of it, and there is no inflation in the proposed scheme, inflation is present in the other method which is injecting new BTC into the circulation.
Which is the same. If you were to compare it by the usage of purchasing power parity, you would arrive at the same conclusion. The amount of Bitcoin that you have in the future is less than what you have now. Your purchasing power in terms of Bitcoin has decreased, which has the same effect as an inflation.
We have no proof that there are any "lost" coins, we don't know how much there is, and we don't even know if such a thing exists, to begin with, aside from the small incidents where people lost their PK (which they may recover at some point). The advertised "lost coins" in the media could be unrealistic, does anyone know for sure that Satoshi's coins won't be spent at some point in the future? we don't.
Besides, when you start creating more supply, it's only a matter of time before you create more coins into the system than those "lost coins".
That is a very bold claim. It is more than likely that there are "lost" coins, I guarantee that. People are likely to misplace their backups, destroy their PC by accident, intentionally burn those, etc. That is where tail emission can be useful, and how Ethereum manages their supply, albeit in a different manner. Burned coins are arguably lost, coins sent to OP_Return are permanently lost. Regardless, it is irrefutable that coins are being lost.
wealth will be redistributed whether it's via fee/tax or creating a new supply, if all you have and can afford to buy is 1 BTC, your wealth will decrease with every block that is mined.
There are many forms of taxation, when you increase the supply by 1% you are simply taxing everyone who owns the currency by 1%, taxation done by the government is bad because they tax you twice when you make money they tax you a good %, and then their ever printing is also another form of taxation, but BTC taxation will be done only once, either by increasing the supply as you said you prefer or by paying fees/tax to store your coins, looking at the numbers it's exactly the same.
Regardless of the mechanism or the wording we put around it increasing the supply and extracting fee is the same in terms of simple math, my argument is that the psychological/economical effect of lifting the 21M cap is worse than charging a storage a tiny fee, but of course, I could be wrong.
Exactly, they are the same. I would argue that a tail emission scheme would work better than a flat tax on all the UTXOs available at a certain snapshot.
Here's a post on tail emissions:
https://petertodd.org/2022/surprisingly-tail-emission-is-not-inflationary.