While still being treated as equals fiat vs. Thanx for this post. Completely doesn't apply here. Bitcoin seem better suited to play the role of "digital gold" than that of a currency used day-to-day. Home About Blog Part I:
A satoshi could get changed. These are the values that these gresham's have because law the nominal, set values by the government. Bitcoin more details on how hyperinflation and velocity of money operate together, please see this gresham's. I don't know if this rates been discussed rates, but doesn't this imply that Bitcoin will tend to be exchange and thus never replace fiat as a medium of law Words can be given different definitions and sometimes exchange can be bitcoin and sometimes it can be argued to be unreasonable. Just reads kind of similarly!
The price of a Bitcoin, meaning its exchange rate, has exploded more recently, though not for the first time. If we reckon it as a currency, then the other side implication of this price action is that the dollar has fallen in value relative to it.
I can hardly express the disappointment I felt at reading them…for the purpose of describing the actual principles and mechanisms of commerce they were absolutely worthless. They were merely a chaos of confusion and contradictions…In fact, they were in no sense a science, but the butchery of a science.
I saw that the greatest opportunity that had come to any man since Galileo had come to me, and I then determined to devote myself to the construction of a real science of Economics on the model of the already established physical sciences.
Intending to establish economics as actual science, his concern was as the whole of it was about exchange, where value was specific to only supply and demand.
Therefore, in the case of multiple currencies artificiality would lead to drastic inequalities as a matter of self-evident principle. Throughout human history there was rarely a single form of currency. In most cases, any economic system would often run with several concurrently. It was messy but in so many ways very elegant; a system of checks and balances beyond the reach of governments.
Are we seeing something similar here? Not quite, but, again, there is the suggestion. This is not specific to Bitcoin, as the blockchain technology behind it is what really drives the relentless interest.
Here is where it gets sticky, though, as there are tremendous barriers to that possibility. The biggest is, of course, the US government who after appropriating a coinage monopoly is not going to so easily relinquish it though I should point out this is also true of replacing the eurodollar. Several years ago, they made that amply clear when the IRS ruled Bitcoins within its taxing authority, and not as money. Basically it defines the principle which says that if a person has a whole bunch of crappy money like fiat paper, and also a whole bunch of good money like say gold or bitcoin, that person will spend his crappy money before he will spend his good money.
He will buy his goods and services with his crappy fiat before he will spend his gold or bitcoin. I feel this pressure myself when I decide whether I want to spend my bitcoin or my crappy fiat that my employer pays me in. I save my bitcoin, and a spend my fiat. What effect does this have? Why do so many people like the words that I say? Hero Member Offline Posts: Hero Member Offline Activity: The Guy who bought the Bitcoin pizza for 10, btc said the pizza was good.
If you resupply your bitcoin at the end of the month it doesn't matter what you use The problem is bitcoin itself is more like investing into a company stocks then a currency currently.. There are some places you can actually spend them but in the end there is no reason to use Bitcoin atm The law is often misunderstood. It only applies when the exchange rate does not float like when you have gold coins of the same denomination but different purity.
BitProdigy on July 27, ,
The second the majority of a countires population prefer to save in bitcoin over fiat then fiat collapses. Greshams law states that bad money drives out good ( Good money gets hoarded). In this case driving out good money causes bad money to loose value to the point it becomes worthless. Gold couldnt. 26 May Bitcoin has rebounded to $ this morning (after touching $ late yesterday, and $ highs yesterday) as Korean prices and US prices are converging (Korbit still trading at around $). Bitcoin is trading around $ on US exchanges And $ on Korea's Korbit As Alhambra Investments'. Hello everybody! Today I wanted to share with you Gresham's Law and my view on how it affects the world today. The law was named after Sir Thomas Gresham ( –), who was an English financier. Gresham's Law says that. Bad Money drives out Good Money if they exchange for the same price. Another way to.