Bitcoin is further away from being The numeraire; not only is it a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘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 unique in storing worth for thousands of years. Nothing else in touch of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets 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 might become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true value of this Bitcoin, no? What this actually means is banks recognize that they could exchange Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it is roughly 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? Powerful stuff, we think – what are your thoughts? No question, we are just getting going with all that can be known about bitcoin revolution richard branson. Yes, it is correct that so many find this and other similar subjects to be of great value. A lot of things can have an effect, and you should widen your scope of knowledge. It is always a wise decision to determine what your circumstances call for, and then go from that point. The rest of our talk will add to what we have mentioned so far.
There would be no Bitcoins left in Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat print parade? But , by the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value through ‘over-printing’…
We come to the main issue; why hunt To get a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The answer is not in a new sort of money, but at a new social arrangement, 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 achieved, Gold will restart its ancient and critical role as fair money… and not a moment before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, so he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, at its peak using over 100 workers, until economic upheaval ruined the profitability of North American manufacturing. Driven from business, he chose to study economics… to detect the cause of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners following their successful development of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring effect and it isn’t yet known if it’s good or bad to ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, usually inquire why does the Halving occur if the consequences cannot be predicted. The solution is simple; it’s pre-established. To offset the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins would ever be issued, which can be accomplished by cutting down the reward given to miners in half each four years. Thus, it is a vital part of ‘Bitcoin’s presence and not a decision.