Bryan on Nostr: Nice summary of Gresham's and Theirs' laws, and how they interact. 🫡 One ...
Nice summary of Gresham's and Theirs' laws, and how they interact. 🫡
One additional thing to consider however is the digital vs physical nature bitcoin and gold, ans its effect on transaction throughput.
According to LynAlden (nprofile…3tqm)'s book Broken Money, gold was eventually replaced because it's transaction speed was too slow due to its physical limits, which bitcoin does not share.
Even with custodians, as long as they allow withdraws, users can always self-custody their entire stack into their own cold wallets in 60 minutes or less, and groups of users can coordinate to mass withdraw to confirm the validity of any custodians syated bitcoin reserves.
One additional thing to consider however is the digital vs physical nature bitcoin and gold, ans its effect on transaction throughput.
According to LynAlden (nprofile…3tqm)'s book Broken Money, gold was eventually replaced because it's transaction speed was too slow due to its physical limits, which bitcoin does not share.
Even with custodians, as long as they allow withdraws, users can always self-custody their entire stack into their own cold wallets in 60 minutes or less, and groups of users can coordinate to mass withdraw to confirm the validity of any custodians syated bitcoin reserves.