From: "Perry E. Metzger" <pmetzger@lehman.com>
Date: Thu, 21 Oct 93 12:12:57 PDT
To: cypherpunks@toad.com
Subject: Re: backing
In-Reply-To: <931021134500.22e25c67@CCSVAX.SFASU.EDU>
Message-ID: <9310211911.AA22179@snark.lehman.com>
MIME-Version: 1.0
Content-Type: text/plain



F_GRIFFITH@ccsvax.sfasu.edu says:
> point that digital currency needn't be poorly backed.  However, also note
> that government issued dollars would circulate in preference to gold
> backed digital currency issued by someone else according to Greshams 
> law (which was stated in reference to metal coins, but applies to
> other forms as well).

This is not what Gresham's Law says.

Gresham's Law is that if there are two kinds of coins that are stated
by law to have equal value, the one thats actually worth less because
of metal content will be the one that you spend first. It doesn't
apply in this instance at all.

Perry