Also you didn't address my point that rather quickly there would be people with no money. If you did subdivide the pennies I don't see how that's any different than printing more money. It's just what side of the decimal point you want to be on.

Subdividing pennies might be more dangerous actually because presumably you could only do it by a factor of 10. Would we say that on March 31st a dollar is worth 100 pennies but on April 1st its worth 150? Or would we just add another layer of 1000 micro pennies equal one penny? At least with current inflation they can introduce new dollars as they need so inflation is controllable. In your version its not controllable because its mandated by access to the currency itself.

this is a fact of human psychology that's a real barrier to your system, and unless it is addressed, bitcoin will continue to fail.