Sachin on Nostr: Bitcoin does fit into Mises' regression theorem. In fact, it aids in explaining ...
Bitcoin does fit into Mises' regression theorem. In fact, it aids in explaining Bitcoin's value along with Menger's origins of money.
Initially, Bitcoin was being mined and exchanged among developers, cypherpunks and hobbyists for some reason. They thought it was worthwhile to spend their CPU resources and time in order to learn about it and obtain it.
Then, someone at some point was willing to voluntarily part with his dollars or goods he valued in exchange for some Bitcoin when its market value was $0.
This could be the person who thought its value was $0.0025 at bitcoinmarket(.)com while making the first trade or Laszlo who was willing to part with his pizza for 10,000 bitcoin whose value was $25 when he made the first real-world transaction.
But the transactions happened voluntarily without any authority telling them that Bitcoin is money or that it is valued at a certain price or that they should define it in a particular way.
And other people decided to part with their dollars in exchange for Bitcoin at other prices.
Why any of these people decided to participate in these exchanges or why they thought Bitcoin had value, only they know. It was their own subjective valuations of Bitcoin that gave it a price, and continue to do so.
Now, we have many market participants valuing it at different prices, looking at what it was in the past and forecasting it to be worth various amounts in the future to buy, sell, spend or earn it right now.
Check this out:
Bob Murphy on Bitcoin and Ludwig Von Mises’ Regression Theorem
https://consultingbyrpm.com/blog/2014/03/on-bitcoin-and-ludwig-von-mises-regression-theorem.html
Initially, Bitcoin was being mined and exchanged among developers, cypherpunks and hobbyists for some reason. They thought it was worthwhile to spend their CPU resources and time in order to learn about it and obtain it.
Then, someone at some point was willing to voluntarily part with his dollars or goods he valued in exchange for some Bitcoin when its market value was $0.
This could be the person who thought its value was $0.0025 at bitcoinmarket(.)com while making the first trade or Laszlo who was willing to part with his pizza for 10,000 bitcoin whose value was $25 when he made the first real-world transaction.
But the transactions happened voluntarily without any authority telling them that Bitcoin is money or that it is valued at a certain price or that they should define it in a particular way.
And other people decided to part with their dollars in exchange for Bitcoin at other prices.
Why any of these people decided to participate in these exchanges or why they thought Bitcoin had value, only they know. It was their own subjective valuations of Bitcoin that gave it a price, and continue to do so.
Now, we have many market participants valuing it at different prices, looking at what it was in the past and forecasting it to be worth various amounts in the future to buy, sell, spend or earn it right now.
Check this out:
Bob Murphy on Bitcoin and Ludwig Von Mises’ Regression Theorem
https://consultingbyrpm.com/blog/2014/03/on-bitcoin-and-ludwig-von-mises-regression-theorem.html