Let's say that I want to kill Bitcoin by means of a transaction attack. What in the bitcoin system prevents the following approach:
I buy a limited number of bitcoin in the market.
Using a small number (say 50) physical computers all running bitcoin clients and accessing the net through proxies, I generate, say, 100.000 wallets - each with their own bitcoin addresses.
(Running a script on the computers) I start sending random amounts (mili-to nanobitcoin range) of bitcoin back and forth between all my 100.000 (or more) wallets - each at a very high frequency. Average flow of bitcoin between wallets average to zero.
This causes an explosion in the number of daily transactions (currently in 1,000-10,000/day) range to millions or billions of transactions.
This makes every block gigantic in size causing an explosion in the blockchain and causing widespread problems with blockchain verification, storage and (worse) synchronization => the network dies.
Can someone explain why bitcoin is immune to this kind of "transfer attack"?