You're off-base when it comes to Gresham's Law. First of all, you state Gresham's Law precisely backwards. It doesn't say that 'good money drives out bad'. What Gresham showed is that "bad money drives out good". Literally the reverse of what you said. Secondly, Gresham's Law says absolutely nothing about inflationary vs deflationary currency. What it says is that currency which has become 'debased', meaning coins whose constituent elements, i.e. metals, are worth less than their face value, drives out of the general marketplace (and into private hoards) coins which are not 'debased', because debased coins can't be profitably melted down for the value of the metal, so they get discarded into the marketplace (i.e. 'spent') before coins that can be profitably melted down for their base metal value — for obvious reasons that do not, however, have an obvious relationship to with modern currency. There is no direct analogy to Gresham's Law in comparing govt-backed fiat currency with cryptocurrencies like Bitcoin. You may claim that a currency being 'inflationary' is equivalent to a metal coin being 'debased' but that's your interpretation: that's not what Gresham's Law actually says. One could as easily argue that Bitcoin is 'debased' relative to fiat, because fiat is guaranteed redeemable by the government (it's 'constituent elements' being interpreted as its government backing in this case), whereas Bitcoin isn't guaranteed redeemable by anyone for anything: its value could go to zero tomorrow. One could also of course argue that the American economic system is ripe for collapse, whereas Bitcoin's future is based on mathematics, so fiat is the 'debased' currency. There are valid arguments for both perspectives. (And there are counterarguments against both perspectives as well.) Therefore, it is purely a matter of interpretation in what direction Gresham's Law applies to Bitcoin, meaning the law cannot be objectively applied to these currencies without some subjective interpretation of what precisely is being 'debased compared to its face value'. There is really nothing BUT face value in any modern currency. The 'base value' of a nickel might be 4 cents worth of metal. In that sense it would be slightly 'debased'. But what's the 'base value' of a hundred dollar bill? How many government bailouts debased it and by how much? What's the 'base value' of a Bitcoin? How much precisely does having a single centralised core development team debase that value? Until there are objective answers to these questions, there can be no objective way to decide which one is more 'debased' and therefore no objective way to apply Gresham's Law.