The reason why Gresham's Law further doesn't apply is that it assumes that the two monies are legal tender with the same face-value, whereas Bitcoin is not legal tender.
The choice to prefer to spend Bitcoin or fiat during some particular transaction is not primarily dependent upon which has the higher market value. One currency is simply easier to spend, currently, due to regulations and payment rails.
Even those who only own Bitcoin sometimes have to convert it to fiat, in order to spend it. That is the opposite of Gresham's Law.
Laeserin
npub1m4…jc2jl
2024-06-16 12:09:20
in reply to nevent1q…yxaz
Author Public Key
npub1m4ny6hjqzepn4rxknuq94c2gpqzr29ufkkw7ttcxyak7v43n6vvsajc2jlPublished at
2024-06-16 12:09:20Event JSON
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"content": "The reason why Gresham's Law further doesn't apply is that it assumes that the two monies are legal tender with the same face-value, whereas Bitcoin is not legal tender.\n\nThe choice to prefer to spend Bitcoin or fiat during some particular transaction is not primarily dependent upon which has the higher market value. One currency is simply easier to spend, currently, due to regulations and payment rails.\n\nEven those who only own Bitcoin sometimes have to convert it to fiat, in order to spend it. That is the opposite of Gresham's Law.",
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