A quote that struck me while listening to Audible last night:
"People have historically been willing to deal with weak money if it’s faster than gold, but if weak money doesn’t even have a speed advantage relative to harder money alternatives, then in a world of widely accepted bitcoin it would likely become harder for governments to convince their people to accept fiat currencies for payment and hold large amounts of value in them.
Gresham’s law dominates until the weaker money is basically useless. At that point, Thiers’ law takes over, which observes that good money drives out bad money.
A payee generally wants to pay for goods with weaker money, and a merchant generally wants to sell their goods for stronger money.
If a weaker money gets bad enough that merchants won’t even accept it, that is when Gresham’s law gives over to Thiers’ law. ”
Broken Money
Lyn Alden
CodingInLondon / Matt
npub16n…lftma
2024-01-14 05:45:24
Author Public Key
npub16nd6gm54kk5jf72hzv4glwcqwtka8s28p8x6m4cddxlmum3d8nhs9lftmaPublished at
2024-01-14 05:45:24Event JSON
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"content": "A quote that struck me while listening to Audible last night: \n\n\"People have historically been willing to deal with weak money if it’s faster than gold, but if weak money doesn’t even have a speed advantage relative to harder money alternatives, then in a world of widely accepted bitcoin it would likely become harder for governments to convince their people to accept fiat currencies for payment and hold large amounts of value in them. \n\nGresham’s law dominates until the weaker money is basically useless. At that point, Thiers’ law takes over, which observes that good money drives out bad money. \n\nA payee generally wants to pay for goods with weaker money, and a merchant generally wants to sell their goods for stronger money. \n\nIf a weaker money gets bad enough that merchants won’t even accept it, that is when Gresham’s law gives over to Thiers’ law. ”\n\nBroken Money\nLyn Alden\n",
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