Is Gresham's Law and the term Gentrification interchangeable - 2 terms Crypto Holders should understand

in #bitcoin7 years ago (edited)

I mean, Is Gresham's Law the Same as Gentrification, really and visa versa


So what is Gresham's Law and Gentrification

Hopefully understanding these terms will help us make more informed and safer choices in our involvement and trading of Cryptos.

unsplash, Aidan Bartos

Gresham's Law states that poor forms of money win out and supersede better forms of money types as time goes by.

So, it could be said that Gold was a better form of money than paper Fiat money because -

  • it could not be duplicated of counterfeited easily.
  • it was in finite supply, and increased in amount % wise at the same rate as the human population increased.
  • it could thus not be changed in value to suit the whims of a particular government or bank - it had a set value all the time.
  • Gold was a universal form of money that could be exchanged and used anywhere in the world - trusted and recognizable everywhere.

Yet Gold lost out to paper money as a money form and became a store of value instead.

Gentrification means basically, standardizing or modernization of something to conform to a set taste or requirement of the powers that preside over it.
It means the mainstreaming of something, with the good and the bad that comes with it.

Generally, when something becomes gentrified, it becomes something used by the masses - it becomes a little easier to use, but comes with more rules, conformity and stifling.

So questions come to light!

Will some Cryptocurrencies that have question marks looming over them like EOS actually do well because of Gresham's Law effect even though they may not be the most saintly or safest BlockChains out there?

And, will some good coins loose value over time simply because they have become 'mainstream' and are simply not the cool in thing to be in anymore?

Ptych - Future Proofing your Psyche

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