gaussian said:

Deflation is well studied in economics. This will result in coin-induced hyperdeflation that will result in demand for the coin dropping to absolutely zero. I don't understand why people seem to think cryptocurrencies are immune to the basic principles of macroeconomics. My guess is these people think deflation is a good thing. Only someone ignorant of economic factors thinks because deflation makes money worth more it's obviously good.Eventually all possible theoretical value will be owned by a few people. Those few people will have no way to use their coins because demand won't exist on the other side of the market. Who would make a market on a coin that will instantaneously destroy 1% of it's value?The term economists use is "deflationary spiral" and it never results in anything anyone would remotely call "interesting". The coin will literally kill itself after some number of iterations as less and less people see value in using it.