Greshams law manifesting in a digital economy predicts a global digital bank run into bitcoin.

The term greshams law refers to "bad money driving good money out of circulation". Throughout human history this has meant people save the good money and spend the bad money because both are circulating in the market together. You would get some change thats half good money and half bad money then save the good money while spending the bad so your savings is made up entirely of good money.

Today in the digital age greshams law takes an entirely different form. Fiat and bitcoin dont circulate together in the market, you cant spend fiat and get change in bitcoin then save that bitcoin. So how do you save bitcoin while spending fiat? The only possible way is to buy bitcoin with your fiat savings.

Throughout history greshams law has meant saving the good money but in a fiat dominated digital economy where banks and VISA reign supreme the only way greshams law can manifest is by people taking their fiat savings and buying bitcoin.

Today in the digital age greshams law will take hold through a digital bank run. People will stop saving fiat, their fiat savings will get instantly sent from their bank to an exchange where they will save in bitcoin.

This phenomenon is a law of human nature, it is inevitable. As more and more people wake up to how bad their fiat currency is because of inflation more and more people will use their savings to buy and save in bitcoin, changing their bad money for good money.

A bad treasury bond auction followed by a repo market collapse followed by a financial crisis is all it would take for a wave of people around the world to send their bank deposits to a bitcoin exchange and this could all happen within the space of a few weeks, just as fast as silicon valley bank lost all their deposits and collapsed.

Greshams law is predicting a massive digital bank run because the only way for greshams law to manifest in a digital economy is for people to send fiat out of their bank to buy bitcoin.

This law of human nature states the entire world is going to want to buy bitcoin instead of saving fiat in their bank. As this happens you better believe banks are going to block any and all attempts from their customers to buy bitcoin, in fact a lot of banks already do this claiming they are trying to protect you. They arent trying to protect you they are trying to protect their deposits from leaving their bank.

Greshams law states that one day soon everyone on earth is going to be trying to send money out of their bank to buy bitcoin at the same time. Im getting my bitcoin stack sorted before that happens.