Bitcoin is further away from being The numeraire; not only can it be a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in reach of humankind has this unique combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being money. Its advantages are also questionable; the aim would be to restrict the ‘mining’ of Bitcoins to 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 statement could very well be the death knell of Bitcoin; already, a few central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they could 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 roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose could they serve? Powerful stuff, we think – what are your thoughts? There is a great deal within the body of information surrounding bitcoin revolution richard branson. We have found other folks think these points are helpful in their search. You should be careful about making too many assumptions until the big picture is a lot more clear. It is always a good idea to determine what your circumstances call for, and then go from that point. The rest of our talk will add more to what we have mentioned so far.
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth can they be used as a medium of trade? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the main dilemma; why search To get a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The answer isn’t in a new sort of money, but in 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 liberty not tyranny. Once this is accomplished, Gold will restart its ancient and critical role as fair money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he has intimate encounter with financial devastation.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, in its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American production. Driven out of business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful creation of this 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 if it is good or bad for ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, usually ask why does the Halving take place if the consequences cannot be predicted. The solution is simple; it’s 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 ever be issued, which is accomplished by cutting down the reward given to miners in half every 4 decades. Thus, it’s an essential part of ‘Bitcoin’s existence rather than a decision.