Bitcoin is further away from being The numeraire; not only can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is exceptional in storing value for thousands of years. Nothing else in touch of humankind has this unique blend of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages will also be questionable; the aim would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate worth of this Bitcoin, no? What this actually means is banks recognize that they might exchange Fiat for Bitcoins… and also 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’s about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what useful purpose would they serve? Well, just what do you think about that so far? There is a great deal within the body of information surrounding bitcoin revolution richard branson. A lot of men and women have found certain other areas are helpful and contribute good information. Sometimes it can be tough to get a clear picture until you discover more. Do you know exactly the kind of info that will help? If not, then you should discover more about this. The rest of our talk will add more to what we have said so far.
There would be no Bitcoins left Circulation; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat supposedly loses value through ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ when we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of 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… without IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as fair money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he has intimate experience with financial devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however it does have an enduring effect and it isn’t yet known whether it’s good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically ask why will the Halving occur if the consequences cannot be predicted. The solution is simple; it is pre-established. To counter the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a way 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. Thus, it is an essential part of ‘Bitcoin’s presence and not a decision.