Well if everyone holds the currency since we are assuming this is the dominant currency to have control over the economy. Then everyone would get this effect meaning it would raise standard of living. Like you said no other currency has a hard cap so all we are saying all of us is theoretical because none of us have a crystal ball we can only make assumptions from our own understandings of economics and how we perceive the future will look.
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You can't increase standard of living with numbers, you can only increase standard of living with production and economic growth. Numbers are how we measure that, once a metric becomes a goal it ceases to be a good metric.
But since it's an adversarial system, that doesnt mean people will go "better not do that", they'll still do it and you get suppression of economic growth. You can't number massage your way out of these kinds of problems.