What Bitcoin is

[shurdeek]

@Smiling Dave

Due to the length of the article and the lateness of the hour, it will be in two parts. Here is a link to the first part. http://smilingdavesblog.wordpress.com/2012/10/07/bitcoin-and-the-numbers-game/

Let me quote from it:

@Smiling Dave

… does that make playing cards a medium of exchange? The answer is, yes it does, for those transactions in which it was used. But it is certainly not a medium of exchange for in those transactions in which it was not used.

You’re back to your old tricks where you attempt to obfuscate the difference between money and a medium of exchange.

@Smiiling Dave

The answer, of course, is that it depends on how many people find the thing useful.

And here you conflate the (broader) transaction costs with a subset of transaction costs (the size of the network, AKA “double coincidence of wants”).

But these are just auxiliary issues. The more fundamental one is that you lack a solid framework. I challenge you to formulate the regression theorem in up to five simple implications, like I did here: https://forum.freecapitalists.org/t/bitcoins-prove-mengerian-account-of-money-creation/21195/125.