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I agree that it doesn't apply, but that doesn't mean the principle can't be elucidating.
Sats and fiat don't have a fixed exchange rate, which is the premise of Gresham's Law. Dollars won't necessarily drive out Bitcoin for the same reason Argentine Pesos didn't drive out the dollar.
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The hope is eventually bitcoin will prove to reverse Gresham's Law where good money will drive out bad.