hajisatoshi on Nostr: # 7: Bitcoin’s Fixed Supply & Mises’ Regression Theorem — Why Scarcity Precedes ...
# 7: Bitcoin’s Fixed Supply & Mises’ Regression Theorem — Why Scarcity Precedes Value
💡 Key Idea: Bitcoin’s code-enforced scarcity (21 million cap) aligns with Mises’ Regression Theorem, which asserts that money’s value originates from its historical scarcity and utility as a market good before becoming a medium of exchange.
🌍 Real-World Example:
Gold became money because it was first valued for its scarcity and use in jewelry/industry. Similarly, Bitcoin’s initial value emerged not as “money,” but as a censorship-resistant digital experiment for tech pioneers. Its scarcity and security (proof-of-work) gave it inherent utility, paving the way for its monetization — just as Mises predicted.
📜 Austrian Connection: Mises argued money can’t spring from thin air; it must evolve from a valued commodity. Critics claim Bitcoin “violates” this, but its early adoption as a digital commodity (decentralized, immutable, programmable) satisfies the theorem. Scarcity + utility → store of value → medium of exchange.
⚡ Why It Matters: Fiat currencies, unbacked by scarcity or utility, rely solely on state coercion. Bitcoin’s fixed supply and organic adoption path make it the first digitally native sound money — immune to politicized inflation.
🔍 Food for Thought: If Mises were alive, would he call Bitcoin “the gold of the digital age” — or a revolutionary expansion of his theory into the internet era?
Engage below! 🗨️
#Bitcoin #AustrianEconomics #RegressionTheorem #Mises
💡 Key Idea: Bitcoin’s code-enforced scarcity (21 million cap) aligns with Mises’ Regression Theorem, which asserts that money’s value originates from its historical scarcity and utility as a market good before becoming a medium of exchange.
🌍 Real-World Example:
Gold became money because it was first valued for its scarcity and use in jewelry/industry. Similarly, Bitcoin’s initial value emerged not as “money,” but as a censorship-resistant digital experiment for tech pioneers. Its scarcity and security (proof-of-work) gave it inherent utility, paving the way for its monetization — just as Mises predicted.
📜 Austrian Connection: Mises argued money can’t spring from thin air; it must evolve from a valued commodity. Critics claim Bitcoin “violates” this, but its early adoption as a digital commodity (decentralized, immutable, programmable) satisfies the theorem. Scarcity + utility → store of value → medium of exchange.
⚡ Why It Matters: Fiat currencies, unbacked by scarcity or utility, rely solely on state coercion. Bitcoin’s fixed supply and organic adoption path make it the first digitally native sound money — immune to politicized inflation.
🔍 Food for Thought: If Mises were alive, would he call Bitcoin “the gold of the digital age” — or a revolutionary expansion of his theory into the internet era?
Engage below! 🗨️
#Bitcoin #AustrianEconomics #RegressionTheorem #Mises