Which is otherwise known as Gresham's Law. People will save Bitcoin and spend fiat, with bad money driving good money out of circulation under your hypothetical circumstances
I heard Gresham's "law" is for commodity money with intrinsic value, like tobacco. Mr. Free to choose said (sorry, I forgot the link/source) in the past tobacco was widely used in the US as money, and in the end, people spent the low-quality tobacco and saved the high-quality tobacco. This behavior droves out high-quality tobacco out of circulation.
If that "law" can be applied in fiat, then Indonesian Rupiah will push better money out of circulation, and you guys will use IDR! I'll be happy if that happens, lul.
A lot of sufficiently liquid assets can be used as a MoE, which doesn’t make them money.
Could you give me one example in the present era?
I never bought something other than using currency (physical + digital + virtual) and Bitcoin.
CMIIW, MoE is the most substantial factor in determining whether something is money or not.