Did I get any of the facts wrong? Is my reasoning flawed?
you can pull the Ace and say that the original value of a bitcoin was equal to the electricity (electrons, copper wire degraded, silicon & chipsets depreciation) that went into the creation of it.
This is called the labor theory of value and it was subscribed to by early economists like adam smith. Today very few economists mainstream or otherwise accept the labor theory of value. It is generally understood by economists today that the value of an object is determined by the relative subjective valuations of consumers. Bitcoin was valuable early on not because of the labor required to make it nor the precident of value but rather the foresight of some clever speculators who recognized the utility as a medium of exchange that it could have in the future and were willing to take an extremely high risk/high reward gamble.