The regression theorem says: for a commodity to become money, i.e. a good people value for mere prospect of later exchange without consumption, in other words, for its exchange-value, it has to have market price first based on the subjective valuation of people using it for consumption, in other words, it has to have use-value before exchange-value.

Since value is subjective one cannot categorize consumption or use-value as acceptable and unacceptable or admissible and inadmissible. Using a thing as a collectible is a consumption. There is no difference between people using a gold necklace for decorative purposes and people using bitcoin initially as a collectible and technology with great potential.

Bitcoin had a price even before the famous pizza transaction. Miners traded electricity for bitcoin and the first transaction of this type was performed by Satoshi himself in the genesis block. The first price bitcoin had was the price in terms of electricity and computing equipment. And what Satoshi got from it? The pleasure of creation.

In essence, there is no difference between ‘the intrinsic value fud’ some gold bugs promote and ‘the energy usage fud’ state-paid environmentalists promote.


In both cases, a critic says: “I don’t recognize your subjective valuation as valid and admissible.”

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