Bitcoin is farther away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in touch of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm makes harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they might trade Fiat for Bitcoins… and to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose could they serve? All right, we have gone over the first couple of points concerning bitcoin revolution gordon ramsay, of course you recognize they play a significant role. They are by no means all there is to know as you will easily discover. It is difficult to determine all the different means by which they can serve you. Once your knowledge is more complete, then you will feel more self-confident about the subject. But we have kept the best for last, and you will know what we mean as soon as you have read through.
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the main issue; why search To get a ‘new money’ if we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new sort of money, but at a new social structure, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is accomplished, Gold will resume its early and critical role as honest money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, so he has intimate experience with financial devastation.
As an engineer and engineer, he Ran a successful family business in Canada for decades, in its peak using over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have a lasting effect and it isn’t yet known if it is good or bad to ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, usually ask why will the Halving take place if the consequences cannot be predicted. The solution is simple; it is pre-established. To counter the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a manner that a total of 21 million coins could be issued, which is achieved by cutting down the reward given to miners in half every four years. Therefore, it is an essential part of ‘Bitcoin’s presence rather than a choice.