Bitcoin is farther away from being The numeraire; not just can it be a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving worth for thousands of years. Nothing else in reach of humankind has this unique combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, namely 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 into 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to solve, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, some central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step 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 realize that they could trade Fiat to get 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 modest change to the Fiat printers; it is roughly 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 could they serve? Has what you have discovered added to your previous knowledge? bitcoin revolution richard branson is an area that provides a tremendous amount for those who are interested or need to learn. We have discovered other folks think these points are helpful in their search. Sometimes it can be tough to get a clear picture until you discover more. So what we suggest is to really try to find out what you need, and that will usually be decided by your circumstances. We will tie all together plus give you a hint of other important information.
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in flow, how on Earth could 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 increase the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But , from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value through ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ when we have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer isn’t in a new sort of cash, 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 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, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.
As an engineer and engineer, he Conducted a successful family business in Canada for years, in its peak using over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven from business, he decided to study economics… to detect the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners after their successful development 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 a lasting effect and it is not yet known whether it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically ask why does the Halving take place if the consequences cannot be predicted. The answer is simple; it is 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 be issued, which is accomplished by cutting down the reward given to miners in half each 4 decades. Thus, it is an essential element of ‘Bitcoin’s existence and not a choice.