Bitcoin is farther away from being The numeraire; not just is it a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, 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 quantified by a true, unchanging physical quantity. Gold is exceptional in storing worth for thousands of years. Nothing else in reach 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 own promise to being cash. Its advantages will also be questionable; the aim would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few central banks have declared 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 legitimate worth of this Bitcoin, no? What this actually means is banks recognize that they could trade Fiat for Bitcoins… and to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it is about a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose would they serve? There just is no denying about the potential of bitcoin revolution richard branson to dramatically alter some circumstances is incredible. No one really can effectively address all the different situations that could arise with this particular topic. But I wanted to stop for a moment so you can reflect on the importance of what you have just read. This is the sort of content that people need to know about, and we have no problems stating that. The balance of this article is not to be overlooked since it can make a huge difference.
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in circulation, 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 destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key issue; why search To get a ‘new money’ when we already 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 at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is achieved, Gold will restart its early and critical role as honest money… and not a minute before.
Rudy J. Fritsch was born 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, so he has intimate encounter with financial destruction.
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 production. Driven out of 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 creation of this new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it isn’t yet known if it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically ask why will the Halving occur if the effects cannot be predicted. The answer 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 can be accomplished by cutting down the reward given to miners in half every four decades. Thus, it’s an essential element of ‘Bitcoin’s existence rather than a decision.