The analysis here predicts the money form of Bitcoin—money that doesn’t have direct use-value.
“Since the marginal utility of the money commodity depends on previously existing money prices, a wiping out of existing markets and knowledge of money prices would render impossible the direct re-establishment of a money economy. The determination of money prices (gold prices) is therefore completely explained, with no circularity and no infinite regression. It does not follow from this analysis that if an extant money were to lose its direct uses, it could no longer be used as money.”
Next:
- 13-1a3a2e5.1 Money necessarily evokes prices in the past—in barter economy, this is not necessarily the case
- 13-1a3a2e6 Money prices of the past influence current expectations, but today’s demand also influences the present price—and the influence of the latter can dwarf that of the former
Related:
- 4-1a4b2b1 ‘One-of-those’ over one-off - Learn from history (not just from your ‘own’ experience)
- 10-2g2c0c We don’t think at the moment (we don’t ‘generate’ ideas), our thinking is connected
- 13-1a3a2e2 The introduction of money creates the money market wherein everything can be exchanged for anything in the economy
- Money as bridge
- Money price as a special form of knowledge