Gresham's Law is more of a saying than an established law like Newton's. It says that bad money drives out good money. This is really relevant to Bitcoin. Fiat has become this fake money that replaced precious metals ages ago. Inflation, mostly pushed by elites, means fiat loses value consistently, while Bitcoin seems to be doing better.
Using Bitcoin as a currency isn't silly at all. Sure, most think of it as an asset now, but if you can buy things with it, then why not? I get that fiat works well for local purchases, but if you're traveling and can use Bitcoin, then what's the harm in that?
Fiat is just inflating like crazy, and people are realizing how quickly its value can drop over time. Diversifying is a smart move, for sure. But if you're only holding Bitcoin, you might find yourself in a bind when you need cash. With fiat like the US dollar, you can use it pretty much everywhere.
Gresham's Law isn't limited to Bitcoin, ya know? It applies to other forms of value too, like gold. The point is that fiat isn’t very useful in the long run and we're seeing it in action.
If you really get the value of Bitcoin, you’d avoid using fiat for everyday transactions. I doubt any true Bitcoiner would spend Bitcoin just to hold onto fiat. Imagine if someone spent Bitcoin when it was worth a ton would you think that’s stupid? Probably not, right?
True Bitcoin fans often won’t ditch it for fiat. Even when fiat loses value, they’d rather hold on to Bitcoin. Sure, exceptions exist, but those who rush to spend Bitcoin on small stuff might not be seeing the whole picture.
A smart move is to invest a little Bitcoin here and there. Buy a product worth $50, then sell it for $100 later. You double your Bitcoin that way! Focus on investing in crypto-related services or products that help grow your Bitcoin.
Ugh, not this again! Gresham's Law seems totally irrelevant today. This whole idea of comparing good coins to counterfeit ones is old news. Counterfeits haven’t changed the value of legit money before, so how is that a thing now? Seriously, Gresham's perspective is from centuries ago.