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Gresham law works only when the exchange between the good/bad money is fixed. Usually by a government/sovereign decree. Otherwise quite the opposite is observe
by vrotaru 14y ago
Gresham law works only when the exchange between the good/bad money is fixed. Usually by a government/sovereign decree.
Otherwise quite the opposite is observed in real world. There's even a word for it. Dollarization.
- RickHull 14y agoYes, I agree that the strict interpretation of Gresham's law is not exactly applicable here, since there is no enforced BTC-USD rate. But the broader sense can still inform, along the lines of Rolnick and Weber: > They also focused mainly on the interaction between different metallic monies, comparing the relative "goodness" of silver to that of gold, which is not what Gresham was speaking of. (from the wikipedia article)