Gresham's law simply explained #greshamslaw

Gresham's Law is a principle in economics stating that "bad money drives out good." It means that if two types of money are in circulation and one is perceived as more valuable (e.g., because it contains more precious metal), people tend to hoard the "good" money and use the "bad" money in transactions. Over time, the "good" money disappears from circulation.

For example, if gold coins and paper money are both used as currency, people might save the gold coins (the "good" money) and spend the paper money (the "bad" money).