Gresham's Law

Gresham's Law states that when two types of money are accepted as legal tender but have different intrinsic values or worth, the less valuable money tends to circulate more widely and the more valuable money is hoarded or removed from circulation. This occurs because people prefer to use the lower-value money for transactions and keep the higher-value money, which holds more intrinsic or perceived value. As a result, the "bad" or less valuable money dominates everyday exchanges, while the "good" or more valuable money becomes scarce in circulation.