Comment: Decent analysis. I'd also

(See in situ)

Decent analysis. I'd also

Decent analysis. I'd also suggest Smiling Dave's (google him/bitcoin) bitcoin analysis.

(Lack of) Accounting for the regression theorem is really the only nail in the coffin necessary, though. Says Mises in Human Action:

"no good can be employed for the function of a medium of exchange which at the very beginning of its use for this purpose did not have exchange value on account of other employments. And all these statements implied in the regression theorem are enounced apodictically as implied in the apriorism of praxeology. It must happen this way. Nobody can ever succeed in constructing a hypothetical case in which things were to occur in a different way."

That's a mouthful, but clearly indicates that bitcoin is not compatible with the regression theorem. 'Apodictic' means necessarily true, that the converse is not possible. Why the regression theorem carries so much weight is a result of the Austrian method of economics, it's not because Mises was a smart guy or because he's worshiped. It's because the method is sound.