econ

How Does the Convergence of Monetary Networks Work with Grisham's Law?

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Convergence of monetary networks can happen, but usually only under strong incentives like efficiency in trade, reduced friction, or political integration. History gives examples (gold standard adoption, USD dominance in global trade), but it’s rarely automatic and often tied to power structures, not just “best money” status. As for Gresham’s Law, it mainly applies in fixed-rate legal tender situations, so in free markets without such constraints, good money can actually outcompete bad. BTC’s potential convergence would depend on open competition, network effects, and trust not inevitability.