Post
Topic
Board Bitcoin Discussion
Re: Gresham's Law and Bitcoin
by
Poker Player
on 28/10/2024, 04:48:40 UTC
It's a simple reasoning. If a coin is made of silver, it is easily worth 1$, but the amount of silver that this coin has is worth 2$. It's worth melting down that coin and selling the silver, rather than using the coin to buy something for 1$.

But, it explains the theory of Gresham's Law better.

I don't know where you get that from, it's just the other way around. If a silver coin is worth $1, it is worth $1, and what happened in ancient times is that to devalue the currency, starting with the Romans, instead of making silver coins they began to put alloys of copper and other metals in the silver in coins with supposedly a nominal value of $1, but people soon realized that it was not pure silver and when carrying alloys of other impure metals they asked for more coins to pay the same as if they were coins of only silver.

I didn't misunderstand this "law", so I gave the examples I did.

I discovered this law by listening to a conversation about Bitcoin. So ask if it would make sense to associate one thing with another.

Certainly nothing like this will happen to Bitcoin. But, I found it interesting to analyze/think about this in relation to Bitcoin and the failed fiat currencies.

There are several of us who believe that you have misunderstood it, and I don't want to turn this into a battle of egos, it's okay to misunderstand something.

Could something like this happen to Bitcoin?
In other words, are people starting to want to save their BTC coins so much that their value is lost?

No, I don't think anything similar can happen to bitcoin.