pull down to refresh
Gresham's Law is about currencies with the same nominal values, not floating exchange rate currencies.
Hmmm might be time for another quick primer. Although I recall discussing this post at one point.
Good idea! I had a different one planned, but Gresham's Law is a much better candidate (plus, it looks like @SimpleStacker and I might disagree).
What would we disagree on?
At a quick glance, I saw you disagreeing with the thesis of the linked post. Maybe we wouldn't actually, but that would be less fun.
Ah now I remember. Yes, I stand by my original post that Gresham's Law is an appropriate term to colloquially describe the phenomena of people not wanting to spend their bitcoin as money because they view bitcoin as undervalued compared to the current exchange rate.
(Yes, I know it is not technically correct, nor how it was used originally, but I think it is similar enough in spirit that using the term for colloquial communication is fine. It adequately describes "bad money chasing out good" within the community of bitcoin believers. In the original framing of Gresham's Law, the reason for the divergence between latent value and market exchange rate is government decrees of the worth of a coin. In the bitcoin framing, from the perspective of bitcoiners, it's a failure of the other market participants to recognize bitcoin's latent value.)
Those are a fine collection of caveats and addendums. They'll be worth elaborating on in the primer.
What was this cycle about? Treasury companies?
I suspect bots will have an easier time with bitcoin's dreariness so maybe they'll use it more than humans. But gresham's law is still in play so I'd guess MoE will be shitcoin/stablecoins and if they're prompted right they'll save in bitcoin.