To play devil's advocate on Gresham's law, I see potential reasons this would fail:

1) It's assumed there needs to be a switch from cash to NewStrongCryptoDollars. That's not the case. The dollar would remain the dollar (in the sense it's still a dollar in your online bank account). Your checking, savings accounts would still be your checking or savings accounts. The paper dollar would be the change - it would no longer have value more than it's inherent worth as an artifact. The only difference would be the birth of the new crypto. I could see this happening "before" they make dollar bills worthless.

2) This law assumes a free-market. I'm pretty sure we're entering a period where freedom is being condensed.

3) This assumes people understand what's going on around them. Cryptocurrencies, why it matters, etc.

4) It's also assuming that the entire world economy would never do this in unison. I'm not so sure about that one either. At the very least, I think the ECB, BOJ, BOE and Fed have been very much on the same page.


On the other part, I'm not saying Bitcoin or it's Gov't-like crypto would preclude cash. It doesn't have to at all. My fear really has to do with cash itself. I think some don't see why cash has value in and of itself (at this time period in history) and I'm trying to spell out why it does. Bitcoin and cash living together is 100% good by me. I just don't think it's wise for us to support the destruction of cash in totality.

It's certainly a conspiracy theory, but I'm kinda hinting that this (negative interest rates) could have been the plan from central banks from the get-go. Bitcoin was created right around the Great Recession by umm... we don't know (kinda odd). It would be pretty genius if the central banks developed a method to grow acceptance of cryptocurrency outside government, do away with cash in order of "progress", only to later begin negative interest rate policy worldwide and begin the painful develeraging that will eventually need to occur.

This is certainly fear... no doubt. It probably won't happen. But, I'm just worried about it and I think the fear is kinda justified.