The Century Reversal of Gresham’s Law: Why “Bad Money” Can’t Drive Out “Good Money” This Time

$BTC
Gresham’s Law—“bad money drives out good money”—is one of the oldest laws in economics. When gold coins and silver coins circulate at the same time, people will hoard the higher-quality gold and spend the lower-quality silver. For five hundred years, this iron rule has never been broken.
But Bitcoin was the first to reverse the rule. When people hold Bitcoin, they don’t want to spend it—not because its “quality” is better, but because it appreciates. People spend fiat currency that depreciates and accumulate Bitcoin that appreciates. The “bad money” gets spent, the “good money” gets left behind—and the amount left behind keeps growing.
So what does this mean? An asset that simultaneously acts as “money” and a store of value, yet it won’t be spent—it will only be hoarded. This isn’t bad money driving out good money; it’s good money driving out bad money—something that has never happened in five hundred years.
When an iron law is reversed, the foundations of the old world begin to loosen.