I'd have a tendency to reflect on Gresham's Law:
"Bad money drives out good if their exchange rate is set by law."
All fiat currencies are ultimately made worthless as a result of human nature. Bitcoin by design, avoids such manipulation. Therefore, I believe Bitcoin fits the category of "good money" in Gresham's Law and as a result will always have a much higher value than any central bank issued fiat.
Cheers!
maxkoda
Gresham's Law is only relevant when there is, as your quotation states, a fixed exchange rate between a "bad" money and a "good" money. When the exchange rate is market-based, as with Bitcoin, Gresham's Law is not relevant.
In these cases, another law comes into play. It's called "Fiat money sucks balls law" and it predicts Bitcoin will be huge
