Gresham's Law and Its Relevance to Bitcoin Today

Gresham's Law isn’t some formal law like those from Newton or Kirchhoff, it’s more of a saying that gained traction over time. It basically means "bad money pushes out good money". This concept really connects with Bitcoin. Fiat currency is seen as bad money, and we all know how it gradually took over, replacing gold and silver coins a few centuries ago. Inflation is often driven by elites intentionally, and sometimes it’s due to disasters. Fiat keeps losing its value month after month, with product prices rising by about 10-15% every year. Bitcoin, on the other hand, is viewed as good money since a lot of people have been holding onto it for the long haul. So if someone has both fiat and Bitcoin but chooses to use fiat for purchases, they’re really missing the point. Let me know if I’m off base.

That person isn't a fool, that person is using Bitcoin as a currency and there's nothing wrong in using Bitcoin as a currency. Although, majority now consider it an asset but its actually a currency that has power to buy goods and if someone purchases goods with Bitcoin then there's nothing wrong in that. Surely, fiat is a good option if someone purchases something locally but when someone is at another country and Bitcoin is accepted as a payment method then there's nothing wrong in using it to purchase that thing.

Fiat currencies are very inflationary and their purchasing powers drop dramatically with years. Diversifying wealth and money into different things is good, it's not bad. With a fund for spending, you will need it to be as most flexible as possible so that you always have something to spend for anything. If you only have bitcoins, some times and some where you can not use bitcoins for paying something. Fiat currencies are very usable anywhere with most common fiat currencies like the US dollar, you can use it in most nations. Bitcoin is an emerging asset and its future is very bullish and bright, but it does not mean I would like to have all my money in bitcoin.

You can also read these topics and what people posted which are about Gresham law and bitcoin: https://bitcointalk.org/index.php?topic=5515787.msg64676030#msg64676030 https://bitcointalk.org/index.php?topic=770219.0 https://bitcointalk.org/index.php?topic=65861.msg764279#msg764279 https://bitcointalk.org/index.php?topic=14591.0 https://bitcointalk.org/index.php?topic=5562487.0 https://bitcointalk.org/index.php?topic=158775.40 It does not only apply to bitcoin, other store of value assets like gold are included. What this is all about is to let people know how fiat are very useless for long term savings.

You are correct for anyone that knows the value of bitcoin. I personally cannot have fiat and keep spending bitcoin and I also believe no bitcoiner will spend bitcoin and save fiat. In this contest, you might regard anyone that does otherwise as a fool and yet you could be wrong. Check in a situation someone was spending bitcoin when the price was at $120k, will you also call the person a fool? I think the answer is no. You spend bitcoin when the price is very high and buy back at discount when the price is low.

People who truly understand bitcoin are unlikely to abandon it and rely only on fiat currency. Even when inflation reduces the value of fiat money, many of those who understand bitcoin still prefer to hold it rather than spend it on everyday transactions. Of course, there can be exceptions but in my view, those who are quick to use bitcoin for regular payments instead of keeping it as an asset are still missing the bigger picture.

A wise person does it right instead, he/she for example buys $50 worth of product with bitcoin and sell it for bitcoin for maybe $100 in three months time.  He now doubles the amount of Bitcoin he has. It's another way of increasing your bitcoin holding, through Bitcoin circular economy The important thing is to invest in good products/services that multiply your bitcoin holdings long or short-term. The best way to do it is concentrate your expenditures on things in Bitcoin/crypto field (for example organic/free range animal farming because it's nomadic, mobile, decentralized ) and expect to reap what you sow in the future

Not this garbage again with this stupid "law"! The whole thing is pretty idiotic and inapplicable to our current standards. It was all about the value of two coins, one coin made out of the exact real gold/silver precious material and one counterfeit coin and they claimed that the value of the real coins would go down because people would fear every single one of them is counterfeit. How does "bad" money like this exist in our society? Counterfeits have existed for centuries, did they ever make the value of legal bils go down? For god's sake, Gresham lived in the 16th century, and just like Malthus who created theories about farming before the invention of the tractor, he hadn't even dreamed of or current society!