Post
Topic
Board Economics
Re: Why Bitcoin is ultimately doomed to fail (not today or tomorrow)
by
deisik
on 05/12/2013, 20:23:36 UTC
That's what Gresham's Law is about. You run away from a bad money (dollars) into a good money (bitcoins).

I'd like to hear what exactly you think Gresham's Law says. It only applies when bad money and good money are required by law to be treated as equal. It doesn't apply to dollars vs. bitcoins, because the exchange rate between dollars and bitcoins floats.

Strictly speaking, you're right. Yes, it does actually say that the law requires bad money and good money should be treated as equal. But this doesn't mean that we can't extend it a bit by substituting that requirement with an individual's discriminating judgment about the moneys, leaving bad money and good money where they are. So let's call it Gresham's Law Extended to keep things simple and clear...

Or you can call it in my honor, I wouldn't mind!