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The Regression Theorem, first proposed by Ludwig von Mises in his 1912 book The Theory of Money and Credit , states that the value of money can be traced back ("regressed") to its value as a commodity. The theorem claims that at a point in time there was a good with intersubjective exchange value based on the value of it as a commodity (i.e. silver, gold, etc.), which led to the good's capacity in given circumstances to procure a specific quantity of other goods as an equivalent in exchange and is derived from the human process of valuing individual goods not granted from nature, [1] based on emotion which was then gradually adopted as money. [2]
Recently, there has been a debate about applying Regression Theorem to Cryptocurrency such as Bitcoin. [3] Since Bitcoin (for instance) is not backed by any commodity, it appears to fail the definition of a currency according to the Regression Theorem. Others hold the view [4] that Bitcoin does fit the definition as it is at once a payment system and money, with the source of value being the payment system.