I appreciate the insightful article from the host. The vitality of currency lies not only in its "appreciation" but also in being "needed". A few points I gathered after reading: 1. We often think that "bad money" is negative. However, from a microstructural perspective, bad money has low circulation costs and high turnover rates, making it a perfect "medium of exchange"; whereas good money (like BTC/gold) is too precious and gets locked in safes, becoming a "store of value". It is not that bad money drives out good money, but rather that market division of labor chooses bad money.
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I appreciate the insightful article from the host. The vitality of currency lies not only in its "appreciation" but also in being "needed". A few points I gathered after reading: 1. We often think that "bad money" is negative. However, from a microstructural perspective, bad money has low circulation costs and high turnover rates, making it a perfect "medium of exchange"; whereas good money (like BTC/gold) is too precious and gets locked in safes, becoming a "store of value". It is not that bad money drives out good money, but rather that market division of labor chooses bad money.