@krnelson Keith, I was confused reading your earlier response to my simply put “if the network does the exhange”, then no problem, post.
Reading your later explanations I think we’re talking about different things in that respect. The SC to milliSC exchange would not work like a traditional exchange or bank, and I think this is why we’re seeing things differently.
The way I envisage this built in network exchange is something like this:
- everyone starts with SC, no-one has mSC
- if I want mSC, I pay 1 SC to the network, which issues me 1000 mSC and puts the received SC in escrow for use when someone wants to exchange mSC for SC. This can happen many times.
- we now have SC and mSC in circulation, and the network has exactly enough SC available to exchange for anyone wanting SC for their mSC
If I want lots of mSC and there are only SC available, no problem. I obtain the SC and convert to mSC, which increases demand for SC. Or vice versa.
Now this may not be feasible technically, I don’t know, but with this scheme, there is no difference between 1 SC and 1000 mSC. So I’m not seeing how your scarcity problem can arise in one, and not the other.
This scheme could be added in at any stage, so that’s good too, so long as it is technically feasible. Same for further denominations. None of which cause inflation.
Hence my statement that demand for one denomination creates demand for the other. You said this was not so, but if you follow the above model for network exchange, I can’t see how you reach that conclusion. So I’m assuming you were imagining some other scheme?