Post
Topic
Board Economics
Re: Mises regression theorem is inconsistent
by
rahl
on 06/06/2011, 10:31:29 UTC
No don't think it violate the Mises regression theorem, it is just that it evolved incredibly fast so the first stages where barely noticeable.

BitCoin was not actually created as a money, but a scarce virtual good that can be owned anonymously. The first transactions with BitCoin would have been barter and not indirect exchanges. People mined some coin and used it to barter to something else, and only gradually there are more and more indirect exchanges where BitCoin is a money taking place.

The fact that a owner of a unit of BitCoin good can not be directly identified and that it is virtual add tremendous utility value to BitCoin. Also a bit of the initial value can be derived from the nuseanse and cost of creating it. Mises theorem is simply and understandably just not adapted to a virtual economy so it is difficult to see, but there is utility value in BitCoin that is not purely monetary. It don't think Mises ever claimed something first have to be used in heavy industry, gold didn't have any industrial value before it was used as money. It was just pretty to make ornaments from and scarce. With BitCoin instead of wanting shiny things to give the money initial value people wanted something which is virtual and who's owner is very difficult to identify...