Theirs Law should trump Gresham's in a non legal tender environment.

Gresham’s law doesn’t concern Bitcoin. It’s about coinage with the same nominal value but with a different metallic substance. Gresham’s Law states that “bad money drives out good” when both forms of money are accepted at the same face value. It applies to situations like when silver and copper coins are both worth “1 unit,” but one has more valuable metal content - people hoard the more valuable one and spend the lesser.

Bitcoin doesn’t fit this because it doesn’t circulate alongside another form of Bitcoin with a different value. There’s no “bad Bitcoin” vs “good Bitcoin” with equal face value but differing inherent value, and its value is market-driven, not nominally fixed by a central authority.

You could argue a modern take with fiat vs Bitcoin, but that’s more about Thiers’ Law or store of value vs medium of exchange dynamics, not classic Gresham.