it isn't "market inefficiency." it's the way people are. there have always been other MOEs that people have used. which is yet *another problem with the hard cap. it creates the need for an inflationary L2 for transactions so that they don't have to spend their UTXOs. suppliers have their own needs. they don't want to spend their UTXOs either. a hard cap incentivizes *literally everyone* to actually transact on another layer. and eventually Saylor says " here use this e-cash from my bank" or the Fed says "here use this CBDC, we'll start you out with $1,000 when you download your wallet." and in 10 years you're back in inflationary fiat banking, backed by Bitcoin UTXOs.

1 if you're going to argue its just how people are then why would the current system be broken at all. Sov real estate and gold, moe dollar. 2 layer 2 are not inflationary. Lightning does not create more bitcoin. People can choose to create paper on top of any system. 3 its not the hard cap that incentivises higher layers its block size, latency and risk. In bitcoin you can trade security for speed by using lightning but not risk rehypothication Ecash has more custody risk but adds privacy. There will also be debt built on top eventually. The point is that it can always fall back to layer 1 which garuntees security and hard cap. Unless you believe .7 monero in 2min blocks is the perfect amount humans will ever need forever for all use cases, you will need a layer 2 too

Also if a monetary system is backed by something its not fiat