Men would have to start over with the process of selection of the more marketable goods as media of exchange (Mises 1998, 408).
The reason for debate on this subject is, we think, that bitcoin and other crypto-currencies were designed to be media of exchange. It could thus seem that private individuals had simply walled a new medium into existence.
From these broadly historical facts or assumptions, Menger describes how the monetary metals were gradually chosen as the most commonly used media of exchange in a process parallel to and dependent on the accumulation of capital goods and the intensification of the division of labor.
Three broad approaches may be used by the state in its attempt to influence the choice of media of exchange: (11)
It can try to confer use value on some goods and make them more suitable as media of exchange by making them legal tender for the settlement of debts.
Their use by the state, its associates, and collaborators is nevertheless a violation of the natural law because the state outlaws competing media of exchange. This violation amounts to robbery, but not fraud.
Producing (but not counterfeiting) any type of money does not violate the natural law in the absence of statute (legal tender) laws outlawing competing media of exchange. Producing or counterfeiting a protected money, in the presence of such laws, is always illegitimate, when it is exchanged with people who are subjugated by those laws.
This is so because the reproducer is taking advantage of (a different set of) statute laws that have outlawed competing media of exchange altogether.
Now it is very difficult to explain how intangible goods like these could ever become media of exchange, let alone money For example, suppose Smith sells a cow to Jones, in exchange for 20 hours of Jones's labor, and then Smith, instead of asking Jones to work for him, exchanges this labor (or some portion of it) with Green to buy, say, a bushel of wheat It is true that Jones's labor is being used by Smith in an indirect way to sell his cow and buy a bushel of wheat from Green.
The regression theorem does not say that all subsequent media of exchange must have been exchanged directly or have a direct-use value.