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If you are a rational actor you would never spend bitcoin when you can spend cash. Unintentionally and ironically legacy finance will open people's eyes to the value of bitcoin by holding it away.

By holding and acting rationally people will begin to pay attention to bitcoin in the masses. This has always been an unintentional backwards thinking by bitcoiners to do everything they can to spend bitcoin. It showed normies bitcoin was not valuable and/or all bitcoinerz are crazy.

Why would you want to spend and encourage spending of the better money. You would spend as a last resort.

If I have a silver quarter and a modern quarter I'd be an idiot to spend the silver quarter. Because although they have the same fiat value at the time of spending the silver quarter is the better money.

Encouraging spending bitcoin has hampered bitcoin more than. Anyone realizes.

https://en.m.wikipedia.org/wiki/Gresham's_law

nobody 2y ago

I disagree with this comparison, but deeply appreciate the effort that went into writing such a well thought position.

My bone with the comparison is that both quarters have equal immediate spendability. Bitcoin and cash do not. If I am faced with the choice of spending cash or BTC, then it is very likely going to *have* to be cash, because the spendability of BTC is very low. At best, I’m going to have to rapidly liquidate BTC into cash in order to spend it.

This strikes at one of the original conversations about money: you can’t eat it. Its value depends not upon being spent, but upon its spendability. $1 is worth a potato only because I can go to Walmart and exchange $1 for an actual potato.

I cannot do that with BTC. I believe the day I *can* and without converting it (at a loss usually) to another currency, the value of BTC goes up. Demand is half of the value equation, and spendability is demand in currency.

Silver coin can be converted back to fiat (also at a loss) which makes it better than modern quarter.

If I’m starving to death and need 50 cents *right now* to keep from starving - silver coin does that too, which is why as a medium of trade, silver coin still beats BTC.

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