William K⚡Santiago🔑☢️ @William K⚡Santiago🔑☢️ - 29d
"On the face of it, Bitcoin’s existence seems to violate Mises’s theorem, unless a preceding non-monetary use can be demonstrated. That is, Bitcoin would have to be first valued for its direct utility before it could hold indirect exchange value. So have the criteria been met, or does Bitcoin violate the theorem?" - Emile Phaneuf The argument that Bitcoin violates Ludwig von Mises's Regression Theorem is a common one among those who have been involved with Bitcoin for some time. However, the emergence of Bitcoin raises important questions about the applicability of Mises's observation in the digital age. The Regression Theorem posits that the value of money is derived from its previous use as a medium of exchange. With the advent of Bitcoin, a purely digital currency with no physical form, one could argue that it challenges this theorem. After all, Bitcoin did not evolve from a previous commodity money, but rather was created from scratch as a new form of digital money. Yet, the success and widespread adoption of Bitcoin suggests that there may be more nuance to Mises's theory than is often assumed. The dynamics of the digital economy, with its rapid innovation and global connectivity, may require a re-examination of how we understand the origins and value of money. The rise of Bitcoin, and the broader developments in decentralized finance (DeFi), offer an opportunity to revisit and potentially expand upon Mises's insights. As a cybersecurity professional with experience in blockchain and crypto assets, I find this a fascinating area of inquiry, with important implications for our understanding of money and the future of finance. Original article: Mises’s Regression Theorem, Bitcoin, and Subjective Value Theory https://www.aier.org/article/misess-regression-theorem-bitcoin-and-subjective-value-theory/
