Energy Store Fallacy

There is a theory that the value of energy expended by proof of work is converted to coin value, in effect “storing” the value for later consumption. To the extent that energy has value, the work is sold for bitcoin, and money is a store of value, this is correct.

However the theory errs in the implication that energy value expended in mining is unique in its contribution to value. Miners trade energy for units. However all merchants trade something. Furthermore, mining can be compensated by side fees, ultimately contributing nothing to demand.

All things offered in trade represent demand. Apart from magnitude, one source of demand cannot be a generally greater determinant of value than another. As such the theory is invalid.