At the risk of sounding like an "idiot" isn't the simple fact that too many coins waters down the value? Like too many dollars or too much gold on the market?
No, the value only waters down when when there's too much of an increase in coins in a period of time.
The value goes down if the supply is increasing more than the demand.
If there's always been a bunch of coins but the total amount never changes then it's not watered down. If it decreases in value, then it just lost demand, it didn't water down by increasing in supply.
At the risk of sounding like an "idiot" isn't the simple fact that too many coins waters down the value? Like too many dollars or too much gold on the market?
No, the value only waters down when when there's too much of an increase in coins in a period of time.
The value goes down if the supply is increasing more than the demand.
If there's always been a bunch of coins but the total amount never changes then it's not watered down. If it decreases in value, then it just lost demand, it didn't water down by increasing in supply.