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I don't find this argument persuasive. If the currency is liquid, you can simply spend the new currency rather than the old, while using the old currency you wo
by Empact 9y ago
I don't find this argument persuasive. If the currency is liquid, you can simply spend the new currency rather than the old, while using the old currency you would have otherwise spent to acquire the new currency. The spending will have negligible impact on your investment outcomes, and you'll be supporting the currency that you're investing in.
- notthemessiah 9y agoThat's a pretty big if. Also, currency is liquid nearly by definition, and bitcoin in relation to other currencies has demonstrated many properties that make it practically very illiquid (e.g. the uncertainty of day-to-day price changes).
- deleted 9y ago[deleted]
- Empact 9y agoThe argument is basically an example of Gresham's law, which is used to explain why value-backed currency often loses out to fiat currency. IMO this doesn't apply to cryptocurrency because Gresham's law was formulated in contexts with lower liquidity and no electronic transmission. https://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law