Upper and lower bounds of the amount of bitcoins? As far as I understand, the bitcoin has an upper limit of 21 Million possible coins. Thus, the price of 1 coin, can in theory climb and climb. However, on the other hand, it seems like the system can handle 10^(-8) of a bitcoin.


Is this observation correct?
Is it already possible to have transactions of fractions of bitcoins?
If (1) is true, how can this fact influence the bitcoin's rate? In some sense, it means that the limit on the number of units is somehow much higher then 21M. Or more generally, how should its rate be interpreted given the existence of such tiny fraction of the unit?
Yes, there are 21 million whole bitcoins, each divisible up to 10^-8.
Yes, transactions for fractions of bitcoins are quite common, just as transactions for fractions of dollars are common.  I could send you 0.00000001 BTC if I were so inclined.
I can give you 1 dollar or 100 pennies, but the existence of pennies doesn't really influence the exchange rate of the dollar.