Replying to Avatar Laeserin

For those who are not aware, Gresham's Law contends that, if people have a purse containing two monies, one whose face-value reflects its actual market value, and one whose face-value is higher than its actual market value (because of coin debasement, like clipping or using cheaper metals at the mint), then people will prefer to use the debased coins first.

Lightning means that you don't have to keep the debased money and spend it, to be rid of it. You can simply convert it.
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Laeserin 1y ago

The reason why Gresham's Law further doesn't apply is that it assumes that the two monies are legal tender with the same face-value, whereas Bitcoin is not legal tender.

The choice to prefer to spend Bitcoin or fiat during some particular transaction is not primarily dependent upon which has the higher market value. One currency is simply easier to spend, currently, due to regulations and payment rails.

Even those who only own Bitcoin sometimes have to convert it to fiat, in order to spend it. That is the opposite of Gresham's Law.

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Laeserin 1y ago

Guess I should write this all up, as an article, but I am about to leave and spend 10000 sats on 🍰 and ☕, since I am a wild, sat-spending woman who likes garden parties.

I shall savor every bite and enjoy every sip. I shall not worry about what 10k sats would buy me in 20 years. I will simply relax and have fun.

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Jacob Drafts 1y ago

Have fun. It’s almost time for me to get ready to pick up my aunt for father’s day and my sister’s birthday. I guess we’ll be outside by my sister’s garden even if it will be 100 degrees out. Last year she made ice cream and blackberry cobbler with blackberries from my aunt’s property. Speaking of enjoying things without worrying about future consequences.

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Laeserin 1y ago

I've decided to up the ante, again, as my decadence has no bounds:

I will also pay for Oma's cake and coffee.

For the many keeping score, seething in frustrated bitterness at my wanton ways:

That is now 2 🍰 and 2 ☕ for the horrific proce of 20k sats. Which, if we stayed home and drank tap water, instead, would allow my great-great-great grandchildren to pay cash for Cuba.

Oh, the tragedy! 😭

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banjo 1y ago

Your wit always entertains L... 😃

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Laeserin 1y ago

It was delicious, nostr:npub1wqfzz2p880wq0tumuae9lfwyhs8uz35xd0kr34zrvrwyh3kvrzuskcqsyn, thank you.

My PO is an awesome PO. 😁

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Ľḭṿḙśƫṟãɖãṁṹṧ💫#RunCoreV30 1y ago

When you spend SATS you can consider to buy back at the current prices, this replacing the traded away coins