Quote from: freetx on July 03, 2011, 05:45:50 AM

Quote from: oOoOo on July 02, 2011, 11:27:44 PM

This is not entirely true.

Gresham's Law states that bad money drives out good only as long as there is a law requiring people to use the "bad" money.
Since the Bitcoin is decentralized and independent, and therefore by its very nature "lawless", it should drive out all the bad (fiat) currencies. So states Gresham's Law.

I think you reversed things mid-stream....yes, BTC is not being forced on anyone....but USD / EUR / etc *are* being forced on people (via Legal Tender laws). Therefore this is why good money (like bitcoin / gold / silver) is being driven out of the market.

People will naturally choose to first spend all their 'bad money' in such situations and hoard the 'good' money. This is exactly what we see with regards to BTC.

Yes this is of course true. At one point however, the "bad" money will have become so bad, that merchants will refuse to accept it all together, requesting gold/silver/BTC instead. At that point in time, the "good" will have driven out the "bad"

I'm predicting the future here, but "bad" money is nothing but a paraphrase for worthless money, and history has shown that all fiats die in hyperinflation.
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