Regression Fallacy

The Regression Theorem relies on the assumption that the first people to value something as a money must do so based on a memory of its prior use value, with the thing eventually obtaining barter value and finally monetary value.

This assumption contradicts the Subjective Theory of Value upon which the theorem relies, invalidating it. Value is subjective, which implies it can be based on anything, even if objectively that basis appears irrational.

The theorem also fails to terminate its regression by not explaining how a person comes to value something for its original utility. One must assume (not remember) something will be useful if nobody has ever attempted to use it. This assumption of utility is valuation, which remains subjective.

The first valuation of a thing can be for any reason, including its utility as a money. This is inherent in the concept of subjective value. The theorem is based on empirical observation of monetary evolution. Yet as an epistemology, praxeology inherently rejects empiricism.

One of many problems with empirical economics is that new observations can invalidate previous conclusions. Bitcoin has done so to this theorem. It can clearly be observed that Satoshi intended to create a money, for its first use as money.