Invoking Aristotle, Max Keiser revealed an article arguing that Bitcoin has an intrinsic worth in its privateness.[1] According to that article, Bitcoin versus Aristotelian intrinsic worth is a match.
Bitcoin Versus Aristotelian Intrinsic Value: A Mismatch
In Aristotle’s work, intrinsic worth specifies any worth an object has independently of being cash. So its intrinsic worth outcomes from its helpful properties as a commodity (quite than as cash). However, Bitcoin is beneficial solely as cash. Then, apparently Max Keiser’s argument could be incorrect. For not being helpful as a commodity, Bitcoin has no intrinsic worth.
Bitcoin Versus Aristotelian Intrinsic Value: A Match
However, there’s a scenario through which all cash turns into a commodity. That scenario is its trade for a distinct type of cash. Whenever purchased or bought, cash turns into a commodity.
Transacting Versus Transacted Money
For us to purchase or promote a financial object, that object should stay its mere chance of being cash: precise cash can solely play the energetic function — because the shopping for object — in any transaction, and by no means its passive function — because the purchased or bought object. It have to be a mere chance to play this final function. Then, as a result of cash all the time belongs both in an precise or simply attainable transaction, we should name it when precise or energetic, transacting cash, and when merely attainable or passive, transacted cash.
As thus, each time transacted, cash turns into a commodity.
So as precise, transacting cash, Bitcoin has no intrinsic worth. However, as simply attainable, transacted cash, it does have an intrinsic worth. This is as a result of, each time purchased or bought, Bitcoin’s intrinsic financial properties turn into its commodity properties.
Therefore, if Bitcoin grew to become the one foreign money of the world, its intrinsic worth would vanish. With no different foreign money to purchase it and for which to promote itself, Bitcoin not may very well be a commodity. It solely may very well be precise cash. Bitcoin’s intrinsic worth relies on its with the ability to compete with different currencies (as a transacted, purchased or bought commodity).
Privacy as Bitcoin’s Intrinsic Value
Still, privateness doesn’t itself represent an intrinsic worth of Bitcoin:
There is a distinction between transaction privateness and public-key privateness.
There is a distinction between trade worth relying on and being itself whichever utilities or properties.
The privateness of Bitcoin transactions relies on Bitcoin’s public-key privateness, which is one among its properties. Likewise, its intrinsic worth probably relies on its permitting transaction privateness, which is one among its utilities. Public-key privateness, by making transaction privateness attainable, permits us to present Bitcoin its intrinsic worth as a purchased or bought commodity (for instance, in Bitcoin exchanges). Intrinsic worth is the trade worth of utilities ensuing from intrinsic properties.
Finally, Bitcoin has different properties than public-key privateness, like its ubiquity and safety — each unknown to Aristotle. Those properties additionally make Bitcoin helpful, regardless of in different methods. It is due to all such utilities — quite than simply due to transaction privateness — that we may give Bitcoin its financial worth.
Bitcoin’s Intrinsic Value
So Bitcoin is probably a commodity however solely when transacted. Only then, its (merely attainable) financial worth turns into its intrinsic worth.
Here is Max Keiser’s article: Is Bitcoin Money?
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