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Bitcoin Versus Aristotelian Intrinsic Worth

Invoking Aristotle, Max Keiser released a post arguing that Bitcoin has an intrinsic value in its privacy. According to that post, Bitcoin versus Aristotelian intrinsic value is a match.

Bitcoin Versus Aristotelian Intrinsic Value: A Mismatch

In Aristotle’s work, intrinsic value specifies any value an item has separately of being money. For not being beneficial as a commodity, Bitcoin has no intrinsic worth.


Bitcoin Versus Aristotelian Intrinsic Value: A Match

Nevertheless, there is a situation in which all money becomes a product. That circumstance is its exchange for a different form of cash. Whenever purchased or offered, money becomes a product.

Transacting Versus Transacted Money

For us to purchase or offer a financial object, that object need to stay its simple possibility of being money: actual money can only play the active function– as the buying things– in any deal, and never ever its passive role– as the bought or sold object. It must be a simple possibility to play this last role. Due to the fact that money always belongs either in a real or just possible deal, we must call it when real or active, transacting cash, and when simply possible or passive, transacted money.

As therefore, whenever negotiated, cash becomes a commodity.

So as actual, transacting cash, Bitcoin has no intrinsic value. As just possible, negotiated cash, it does have an intrinsic worth. This is because, whenever bought or sold, Bitcoin’s intrinsic monetary properties become its product properties.
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If Bitcoin became the only currency of the world, its intrinsic value would vanish. With no other currency to purchase it and for which to offer itself, Bitcoin no longer could be a product. It just might be actual money. Bitcoin’s intrinsic worth depends upon its having the ability to compete with other currencies (as a transacted, bought or sold commodity).

Personal privacy as Bitcoin’s Intrinsic Value

Still, privacy does not itself make up an intrinsic value of Bitcoin:

There is a distinction between deal privacy and public-key privacy.
There is a difference in between exchange value depending upon and being itself whichever energies or homes.
The privacy of Bitcoin transactions depends on Bitcoin’s public-key privacy, which is among its properties. Its intrinsic value potentially depends on its allowing deal personal privacy, which is one of its energies. Public-key privacy, by making transaction personal privacy possible, allows us to provide Bitcoin its intrinsic value as a bought or offered product (for instance, in Bitcoin exchanges). Intrinsic value is the exchange worth of energies resulting from intrinsic residential or commercial properties.

Finally, Bitcoin has other properties than public-key personal privacy, like its universality and security– both unidentified to Aristotle. Those homes also make Bitcoin useful, regardless of in other ways. It is since of all such energies– rather than just because of transaction privacy– that we can give Bitcoin its financial worth.

Bitcoin’s Intrinsic Worth

So Bitcoin is perhaps a product but just when transacted. Only then, its (simply possible) monetary value becomes its intrinsic worth.

Here is Max Keiser’s article: Is Bitcoin Money?
The concepts on this short article come from a new monetary theory provided in my book Representational Monetary Identity.


Conjuring Up Aristotle, Max Keiser published a post arguing that Bitcoin has an intrinsic value in its privacy. In Aristotle’s work, intrinsic value specifies any worth a things has independently of being cash. As real, transacting money, Bitcoin has no intrinsic value. Public-key privacy, by making transaction personal privacy possible, permits us to offer Bitcoin its intrinsic value as a purchased or sold product (for example, in Bitcoin exchanges). Intrinsic worth is the exchange worth of utilities resulting from intrinsic homes.

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