Gresham’s Law applies only to legal tender laws like Newtons Law Applies only to Apples.

There is no block-size debate. There is simply those that know, and those that don’t know. “Big-blockers” want people to believe there is a debate. They want people to believe that Core is bending in their position but I don’t believe that core is even considering scaling bitcoin to a ensure it remains a coffee money. I am going to write this very short simple piece to show how the “big-blocker” agenda is self-defeating.

An accepted fundamental economic principle called “Gresham’s Law” that states essentially “The bad money drives out the good” (note that most people might suggest this is backwards from what would seem to be intuitive). From Wiki:

The law was named after Sir Thomas Gresham, a sixteenth-century financial agent of the English Crown in the city of Antwerp, to explain to Queen Elizabeth I what was happening to the English shilling. According to the economist George Selgin in his paper “Gresham’s Law”: As for Gresham himself, he observed “that good and bad coin cannot circulate together” in a letter written to Queen Elizabeth on the occasion of her accession in 1558. The statement was part of Gresham’s explanation for the “unexampled state of badness” England’s coinage had been left in following the “Great Debasements” of Henry VIII and Edward VI, which reduced the metallic value of English silver coins to a small fraction of what it had been at the time of Henry VII. It was owing to these debasements, Gresham observed to the Queen, that “all your fine gold was convayed out of this your realm.”[12]

Not only is this accepted science (which big-blocker’s and proponents of the block-size debate won’t acknowledge as useful or necessary to have dialogue on), and not only is there a vast amount of historical data to prove this (such data was used to devise Gresham’s law in the first place), but more importantly our ENTIRE global financial system is observable proof that inflated currencies are circulated whereas their counterparts are hoarded.

We can see this confirmed in a US Congressional Research Report on Bitcoin:

Regarding the velocity of money, if the increase in the use of Bitcoin leads to a decrease in need for holding dollars, it would increase the dollar’s velocity of circulation and tend to increase the money supply associated with any given amount of base money (currency in circulation plus bank reserves held with the Fed).

The question that big-blockers are not able to reconcile, which exposes their inability to understand the nature of money, is “How are you expecting a currency to circulate while the price is ‘going to the moon’?”

Put in a different way, these people are screaming at Core to raise the block-size (in order to scale bitcoin comparable to visa etc.), espousing the belief that small blockers are holding down the price because new users will only come if they can freely spend bitcoins, but these same people are failing to acknowledge the absurdity in the claim that rational players in the markets might spend, or part with, an asset that is destined to continually increase in value.

The users of a currency CAN’T circulate bitcoin en masse, while SIMULTANEOUSLY deeming it worthy of hoarding (ie price is raising in relation to other alternative options).

Here I have made a VERY simple and fundamental point based on basic and accepted economic principles. The big-blocker argument is fallacy. It is not based on economic science and I have shown it to be incoherent with itself.

Citizens of the global economy will not circulate an asset they deem worthy of hoarding, such a belief is intellectually absurd, and reveals the true level of knowledge of the person that tries to sell an argument that contradicts Gresham’s Law.

This is a two part article, where the second part is the revelation behind the hidden meaning of the essay Ideal Money, in which the very crux of the argument is the truth about the nature of Gresham’s law and its implication in releasing an e-currency that could bring about stability in our global financial system IF it were designed properly (ie to Nashian standards).