Bitcoin Versus Aristotelian Intrinsic Value

Must Read Stories

Invoking cryptocurrency news xrp , Max Keiser published a short article arguing that Bitcoin has an intrinsic value in its privacy. [1] According to that short article, Bitcoin versus Aristotelian intrinsic worth is a match.

Bitcoin Versus Aristotelian Intrinsic Worth: A Mismatch

In Aristotle’s work, intrinsic value specifies any value a things has individually of being money. So its intrinsic value arises from its beneficial residential or commercial properties as a product (rather than as cash). Bitcoin is beneficial only as money. Then, apparently Max Keiser’s argument would be incorrect. For not being useful as a commodity, Bitcoin has no intrinsic value.

Bitcoin Versus Aristotelian Intrinsic Worth: A Match

There is a scenario in which all money ends up being a product. That situation is its exchange for a various form of money. Whenever purchased or offered, money ends up being a product.

Transacting Versus Transacted Cash

For us to buy or offer a monetary item, that object must remain its mere possibility of being cash: real money can only play the active function– as the purchasing item– in any transaction, and never ever its passive role– as the bought or offered object. It needs to be a simple possibility to play this last role. Due to the fact that money always belongs either in an actual or just possible transaction, we need to call it when actual or active, negotiating cash, and when simply possible or passive, negotiated money.

As therefore, whenever negotiated, cash becomes a product.

So as actual, negotiating cash, Bitcoin has no intrinsic worth. As simply possible, transacted cash, it does have an intrinsic value. This is because, whenever purchased or sold, Bitcoin’s intrinsic monetary residential or commercial properties become its product residential or commercial properties.

If Bitcoin became the only currency of the world, its intrinsic value would disappear. Bitcoin’s intrinsic value depends on its being able to contend with other currencies (as a transacted, bought or sold product).

Personal privacy as Bitcoin’s Intrinsic Worth

Still, personal privacy does not itself constitute an intrinsic value of Bitcoin:


There is a distinction in between transaction personal privacy and public-key privacy.
There is a distinction between exchange value depending upon and being itself whichever energies or homes.
Public-key privacy, by making deal personal privacy possible, permits us to give Bitcoin its intrinsic value as a purchased or offered commodity (for example, in Bitcoin exchanges). Intrinsic value is the exchange worth of energies resulting from intrinsic homes.

Bitcoin has other homes than public-key personal privacy, like its universality and security– both unknown to Aristotle. Those homes also make Bitcoin helpful, in spite of in other methods. It is because of all such utilities– rather than even if of transaction personal privacy– that we can give Bitcoin its monetary value.

Bitcoin’s Intrinsic Value

So Bitcoin is possibly a product however only when negotiated. Just then, its (merely possible) monetary worth becomes its intrinsic value.

Here is Max Keiser’s post: Is Bitcoin Money?
The ideas on this article belong to a new financial theory presented in my book Representational Monetary Identity.

Conjuring Up Aristotle, Max Keiser released an article arguing that Bitcoin has an intrinsic value in its personal privacy. In Aristotle’s work, intrinsic worth specifies any value an object has individually of being money. As real, transacting cash, Bitcoin has no intrinsic worth. Public-key privacy, by making transaction personal privacy possible, permits us to provide Bitcoin its intrinsic value as a bought or offered product (for example, in Bitcoin exchanges). Intrinsic worth is the exchange value of utilities resulting from intrinsic properties.

Leave a Reply

Your email address will not be published. Required fields are marked *