twiifm, you have misunderstood Gresham's law. It only applies to moneys having the same nominal value.
In my examples they have same nominal value
Topic: Hyperbitcoinization (Read 1708 times)
In my examples they have same nominal value
twiifm, you have misunderstood Gresham's law. It only applies to moneys having the same nominal value.
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
They mischaracterized Thier's Law.
And Greshams Law is the generally accept principle "bad money drives out good". There are exceptions however in extreme cases
Gresham's law sees to situations where bad money "must" be accepted, not in voluntary situations. Otherwise, the recipient would just refuse bad money.
Bad money drives out bad means people hoard good money and spend bad money
Haha. Sorry I didnt check before posting. Greshams Law "bad money drives out good money"
For example if an economy using gold was introduced to fiat. People would hoard the gold and spend the fiat.
If economy is using mostly cash suddenly flooded w credit, people would hoard the cash and spend the credit
HyperBitcoinization = the New World Order gone wrong.
It's pretty simple if you think about an example:
You have a silver dollar and a paper dollar. You want to buy an ice cream cone priced at $1. The government forces the merchant to accept both (legal tender laws). Which do you spend? Paper, since you'd rather have the silver.
Now suppose there are no legal tender laws. Which does the merchant demand? Silver, since the merchant would rather have the silver. Paper goes to dust since no one wants it. (Some may say the government will still allow you to pay your taxes in paper money so it'd retain a bit of its old value, but that would destroy the government since all its tax revenue would be unspendable since no one wants paper.)
You have a silver dollar and a paper dollar. You want to buy an ice cream cone priced at $1. The government forces the merchant to accept both (legal tender laws). Which do you spend? Paper, since you'd rather have the silver.
Now suppose there are no legal tender laws. Which does the merchant demand? Silver, since the merchant would rather have the silver. Paper goes to dust since no one wants it. (Some may say the government will still allow you to pay your taxes in paper money so it'd retain a bit of its old value, but that would destroy the government since all its tax revenue would be unspendable since no one wants paper.)
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
They mischaracterized Thier's Law.
And Greshams Law is the generally accept principle "bad money drives out good". There are exceptions however in extreme cases
Gresham's law sees to situations where bad money "must" be accepted, not in voluntary situations. Otherwise, the recipient would just refuse bad money.
Bad money drives out bad means people hoard good money and spend bad money
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
They mischaracterized Thier's Law.
And Greshams Law is the generally accept principle "bad money drives out good". There are exceptions however in extreme cases
Gresham's law sees to situations where bad money "must" be accepted, not in voluntary situations. Otherwise, the recipient would just refuse bad money.
Bad money drives out bad means people hoard good money and spend bad money
It's a good article, but the problem with forecasting is that the future gets in the way. There are factors it overlooks. For instance, altcoins. They are a real wildcard. Fiat currencies could become hybrids which would give them some lasting power. The article is good in general in relation to the technology, but not necessarily to Bitcoin itself, though I myself give Bitcoin a 90% chance.
A great article and fun to read.
All sceptics will be hyperbitcoinized.
I think the interpretation of Gresham's Law depends on the point of view: Good money drives out bad money - if bad money does not have to be accepted - in terms of providing maximum purchasing power. Bad money drives out good money - if bad money must be accepted - in terms of money preferably put into circulation by purchasers (with the good money hoarded).
ya.ya.yo!
All sceptics will be hyperbitcoinized.
I think the interpretation of Gresham's Law depends on the point of view: Good money drives out bad money - if bad money does not have to be accepted - in terms of providing maximum purchasing power. Bad money drives out good money - if bad money must be accepted - in terms of money preferably put into circulation by purchasers (with the good money hoarded).
ya.ya.yo!
Gresham's law sees to situations where bad money "must" be accepted, not in voluntary situations. Otherwise, the recipient would just refuse bad money.
+1This caveat to Gresham's Law is very often overlooked.
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
They mischaracterized Thier's Law.
And Greshams Law is the generally accept principle "bad money drives out good". There are exceptions however in extreme cases
Gresham's law sees to situations where bad money "must" be accepted, not in voluntary situations. Otherwise, the recipient would just refuse bad money.
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
They mischaracterized Thier's Law.
And Greshams Law is the generally accept principle "bad money drives out good". There are exceptions however in extreme cases
Hyperbitcoinization - the idea that the end game is not the flattening out like the top of an S, but rather a final explotion that finishes off all fiat at once, due to a speculative attack on the part of investors.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
http://nakamotoinstitute.org/mempool/speculative-attack/
Nice writing. Good site.
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