Even if a finite number of coins exist if it can be split up by sending out .000001 per say than I don't see how that wouldn't be infinate money. Because lets say you have one bitcoin that is worth 1 dollar and I sold you something that only cost one penny than your saying I would recive 0.01 Bitcoin. So then wouldn't I have a bitcoin too just one worth a penny. We would have created a new coin? Or are you saying that only 26 million people will ever be able to use the currency at one time? Not trying to agrue I just would like to know. =)
It seems to me that your confusing the number of bitcoins in existence with the value of bitcoins in existence.
"Because lets say you have one bitcoin that is worth 1 dollar and I sold you something that only cost one penny than your saying I would recive 0.01 Bitcoin."
Say for instance that there will only ever be 21 million pounds of gold in the world. I can split it up and sell it into arbitrarily many different pieces. It may change in value and through trading gold I may be able to come out with more money then when I started. But at the end of the day If I were to gather up every last bit of gold in the world there would be exactly 21 million pounds of it.
The same is true for bitcoin. If your wondering how the system itself is limited to only ever making a finite number of bitcoins, its because the people who first wrote the code decided it should be that way.