Philipp Güring and Ian Grigg have e-published Bitcoin & Gresham’s Law – the economic inevitability of Collapse (PDF):
Abstract. The Bitcoin economy exhibits remarkable and predictable stability on the supply side based on the power costs of mining. However, that stability is challenged if cost-curve assumption is not solely expressed by the fair cost of power. As there is at least one major player, the botnets, that can operate at a power-cost-curve of zero, the result is a breach of Gresham’s Law: stolen electricity will drive out honest mining. This has unfortunate effects for the stability of the Bitcoin economy, and the result is inevitable collapse.
Previously: Checking In With Bitcoin (10/25/11).