[leot]

Per the other comments here, the applicability of Gresham's law as the author describes is questionable.

However, the author's broader point appears to be that the economic impact of a deflationary currency is largely unknown, and as expressed is worth considering. IANAE, but it seems at least conceptually possible that there could be an economy in which every actor's rational decision was to always buy some token because it appreciated so reliably. Consider, e.g., Shubik's "Dollar Auction" paradox, in which a sequence of rational decisions can lead to an ultimately irrational final outcome. Coupled with Bitcoin's expenditure of energy as proof of work, Bitcoin could prove to behave like a kind of superintelligence akin to one of Bostrom's paperclip maximizers, except it's one that consumes more and more energy resources as it attempts to maximize the value of Bitcoin.

[ramontayag]

I did send the article to my old economics professor so he can tell me where I misunderstand things, but I haven't gotten a reply yet. ️