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RE: AIRSWAP (AST) Will SWAP your FIAT for Its COINS!!
That’s not how Gresham law works. It’s referring to people prefer to use “bad” money in their daily transactions. So they will use fiat for buying and selling rather than gold and silver.
Gresham's law is a little more complicated and it requires particular conditions to exist. Generally speaking, it's when you have two legally mandated versions of the same currency, but where one version is inherently more valuable (the good) than the other (the bad). So a good example would be US dimes, which used to be silver, and were changed over to cheaper metals in 1964. When this happened, there were two versions of dimes in circulation at the same time, the real silver dimes (the good) and the lower value metal dimes (bad), both in circulation at the same time and both legally mandated to be "10 cents." But people knew better, so when it came time to spending, people preferred to hold onto their good silver dimes, and happy to use (spend) their cheap metal dimes when they went to the store to purchase a pack of gum for 10 cents. Over time, the good dimes were kept in people's storage or even melted down, while the bad dimes came to dominate the supply, thus the "bad" replaced the "good." Now let's apply this to what Haejin is saying. I personally do not understand exactly what he is means here, and if he is reading I would love it if he elaborated on how Gresham's law applies here. Is he referring to Gresham's law specifically as it applies to AST or Crypto generally? I suppose he is saying that fiat is the bad, because it is being debased through overprinting, and crypto is the good, because it has better controls on supply. But if this is the case, how will it play out?
My understanding of Gresham’s law is the same as yours. I think he is apllying it in the context that people will hoard or save crypto (as the good money) and get rid of or spend the fiat (bad money).
Well, then he may be on to something because, shit I don't know about you but I definitely prefer to spend dollars and save crypto. So that would make sense. The question in Gresham's law however....what do people do with the currency they decided to stash away for themselves?
I think you have to spend your stashed currency at some point but given the option, you spend fiat over crypto. That is also a self fulfilling prophecy as it is still pretty difficult to spend most crypto.
@thegreatwent - great response, so true, I think some cryptos will win and many will lose, we have the next few years to work out which ones will be the winners in the new blockchain economy, I think a Bitshares, EOS, IOP and Ethereum will be pretty big in the years to come. And doubt there will be others which will dominate the top 10, which are yet to come to market aswell.
Im glad to see new users asking the important questions and learning about crypto. Full upvote for you! :)!
thanks
Probably what is means is just some fancy word to make his advice look legit
https://steemit.com/haejin/@truthtrader/haejin-6-months-accuracy-rating-day-15-3-day-14-accuracy-12-50