Quote from: rahl on June 07, 2011, 07:59:52 AM

BitCoin was developed as a currency from the begining. Just look at its name bitcoin, and the paper that originated them "bitcoins: a peer to peer cash system".

That something is intended to become money does not necessarily mean that it is money.

Of course, only the market can decide if finally the initial project known as BitCoin becomes money, but the initial objective of the project was to provide an anonymous and decentralized medium of exchange and store of value (i.e. money), or at least I have no knowledge about any other non-monetary objectives. Anonymous and decentralized are very nice characteristics, but they are specific characteristics that were specifically designed for its purpose as a medium of exchange

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Transaction privacy is a monetary utility. Costs are irrelevant for market value, I could spend lots of energy and work to produce something that nobody wants, so no matter the cost its market value will be 0. Market values drive costs, not the opposite.

Not it is not. It is payment service utility.
Yes, but you would not place the first sell offer in the market at 0 but probably at your cost or higher unless you where really stupid.

Payment implies exchange, money is medium of exchange. BitCoin is not VISA (payment service), they are exchanged for goods. The payment is performed through the delivery of BitCoins in exchange of goods and services.
It doesn´t matter where you place your ask order if it is not filled. Bid and Ask orders are subjective valuations, price arises from real exchange (executed transactions).

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But I claim that Regression Theorem is not necessary, and it does not work not only with BitCoins, it doesn´t explain well why credit currencies have value. Carlos Bondone´s monetary theory, which is based on Austrian School founder Carl Menger, proposes a stronger monetary theory, which prefectly explains the BitCoin phenomeon and in regard of this theory BitCoins do qualify as money.

It does explain why credit currencies have value. They are initially issued in promises of X that already have a market price. So there is plenty of regression there with a very strong link to previously established prices. Bitcoin has a very weak link to previous established prices but provides additional payment service utility which has value in itself.

Credit currencies are currencies because of its monetary utilities other than store of value (in fact that´s their weakest utility as currency). The great difference between money and credit currency is that the first is a present good used as currency, and the second is someone else's liability used as currency.