Economics

is this a thing?

let's say there is a single currency FAKE and there's only one good: potatoes. People are willing to pay 1 FAKE per potato. But then, a new currency: OTH. Now people are willing to spend 1 OTH + 1 FAKE per potato (or 2 of either)

the first currency was inflated by the second's creation

Co-founder of chainshot, acquired by Alchemy. Now working on all things web3 education!

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems.

it makes me curious if introducing new things valued as currencies (i.e. crypto) automatically has this kind of pressure on traditional currencies in relation to goods

What you are pointing to is that the first currency lost purchasing power due to the introduction of the second. The first did not inflate. We can maybe say it got debased by proxy of the second. We could also say inflation took hold since potatoes became more expensive. 

Is there a real world case for this?