@dyamanaka good to see a thread from you on the forum again. You always have very insightful topics.
I wholeheartedly agree that implementing this particular cryptocurrency will be an invaluable asset in both our fight towards critical mass adoption as well as the libertarian dream of a frictionless currency.
However, I have to break down your argument here to understand it a little better.
You are predominately talking about merchants and consumers - P2P transactions are very important - but the economics of Safecoin are based on the fact that it is representative of actual physical space in that it is a reward given to those who contribute their resources to the Network.
Therefore, must the currency supply be both sufficient to facilitate both Network PUTS as well as P2P transactions?
AFAIK there are multiple approaches to do this.
First is divisibility, the way Bitcoin implements it. Also, there is inflation; often a curse word in these circles, due to the mishandling thereof by fiat currencies. Lastly, there is the option of creating the separation of “PUT-only” and “transaction-only” currencies.
I’ve argued that the last option is prone to intermingling and trading manipulation to make one function as the other. Look at M-Pesa, and how “minutes” on cell phones have become the de-facto currency of Kenya(?). They are meant to be used as minutes, but are now valued as currency.
Keep in mind though, that M-Pesa acts as inflation, as there is no set limit to how many “minutes” that one can purchase, or that can be available at any given time. However, inflation has an inherent characteristic that it devalues the currency that it is supposed to support. There are many monetary systems that we can point to that reveal the dangers of inflation.
As an alternative, divisibility really shines compared to the other two. However, there are few monetary systems in modern economies that implement such a system. It is as yet untested at scale. True - Bitcoin does implement this model, but we haven’t gotten to the point where deflation has set in and divisibility has truly become a factor.
So while I don’t have a true “rhetorical” question to this issue, I will ask: of the three options presented, doesn’t divisibility hold the most promise when it comes to scaling SC?