I am also curious about the long term implications and problems with infinite inflation....

However the problem is mitigated a little at least because technically Steem has 3 seperate currencies, and Steem Power is created equally for all those whom have invested in it in a mathematically, provably fair way.

Basically the system will last until there is a buffer overflow somewhere, however I don't expect that to happen for several hundred years for any given user account based on some napkin math. I may be totally wrong though.

@ned @steemit - has anyone done any testnet testing with exceedingly large Steem Power numbers? Have any economists made any significant evaluations of your inflationary system?

This steem post also really helped me and is pretty new: https://steemit.com/steem/@arhag/where-does-the-money-come-from-a-look-into-the-economics-of-steem