It seems like Gresham's law is at play here. "Bad money drives out good. " If there are two forms of money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation. I think we should consider this and resist the urge to look at limited usage in El Salvador as a failure. By the way, I know the OP isn't suggesting that.
Thank you for this great series of articles.
Is "spend and replace" the antidote to Gresham's Law?
You're sort of doing both: using the better money as money while maintaining your savings in the better money.
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I think so, or at least that's what I do. I can imagine a certain percentage of Salvadoran retail business owners or workers in bitcoin tourist areas who got orange pilled in 2021 or 22. They probably have watched their stash triple, and there's no way in hell they will spend any.
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There is no such thing as Gresham's Law... The proper name is: Copernicus' Law
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