As far as I understand, the bitcoin has an upper limit of 21 Million possible coins. Thus, the price of 1 coin, can in theory climb and climb. However, on the other hand, it seems like the system can handle 10^(-8) of a bitcoin.
- Is this observation correct?
- Is it already possible to have transactions of fractions of bitcoins?
- If (1) is true, how can this fact influence the bitcoin's rate? In some sense, it means that the limit on the number of units is somehow much higher then 21M. Or more generally, how should its rate be interpreted given the existence of such tiny fraction of the unit?