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neonstaticyesterday at 8:05 AM1 replyview on HN

I see one, but then maybe I am just seeing things.

The wikipedia page about "worse is better" re: software linked above states:

  It refers to the argument that software quality does not necessarily increase with functionality: that there is a point where less functionality ("worse") is a preferable option ("better") in terms of practicality and usability.
Copernicus' idea about money has a similar structure - "better" money such as precious metals, art, etc. is being hoarded due to its perceived desirability, leading to more "worse" money in circulation. As a result, the "worse" money is actually "better" at fulfilling its role as currency (bc it's not hoarded). So there is also a point where "worse" becomes "better".

Replies

atanasiyesterday at 10:01 AM

Bad money drives out good money only if there is a legal tender law such that both have to be accepted for the same nominal value. In this case, good money is hoarded because it cannot be traded for its true value.