Bitcoin is further away from being The numeraire; not just is it simply a few, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in preserving value for thousands of years. Nothing else in reach of humanity has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the intent is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then hopeless following 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 measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate value of this Bitcoin, no? This actually means is banks realize that they could trade Fiat to get Bitcoins… and also to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest 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 in the Fed’s ‘wallet’… what practical purpose could they serve? Now that you have read through this far, has that stirred your views in any way? You may already have thought that bitcoin revolution richard branson is a large field with much to find out. We have found other folks think these points are valuable in their search. Sometimes it can be tough to get a clear picture until you discover more. It is always a good idea to determine what your circumstances call for, and then go from that point. We will tie all together plus give you a hint of other important information.
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the key issue; why hunt To get a ‘new money’ when we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The answer is not in a new sort of money, but in a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is achieved, Gold will resume its early and vital role as fair money… and not a moment 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 resultant Hungarian hyperinflation, thus he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, in its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American manufacturing. Driven from business, he chose to study economics… to discover the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however it does have an enduring effect and it isn’t yet known if it is good or bad to ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, usually ask why will the Halving occur if the consequences cannot be predicted. The answer is simple; it’s pre-established. To offset the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins could ever be issued, which is achieved by cutting the reward given to miners in half each four years. Therefore, it’s a vital element of ‘Bitcoin’s existence rather than a decision.