Bitcoin is further away from being The numeraire; not just is it a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, 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 quantified by a real, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in touch of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being money. Its advantages will also be questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm makes 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; already, a few central banks have announced 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? What this actually means is banks realize that they might exchange 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 small change to the Fiat printers; it is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose could they serve? These few considerations will make a difference in your knowledge as they relate to bitcoin revolution richard branson. There is a tremendous amount you really should take the time to find out about. We know they are terrific and will aid you in your pursuit for solutions. Getting a high altitude overview will be of immense value to you. But we have saved the best for last, and you will know what we mean once you have read through.
There would be no Bitcoins left Flow; 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 to… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come to the key dilemma; why hunt For a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not in a new sort of cash, but in a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is achieved, Gold will resume its ancient and critical 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 consequent Hungarian hyperinflation, so he’s intimate experience with financial destruction.
As an engineer and entrepreneur, he Conducted a successful family business in Canada for years, at its peak employing over 100 workers, until economic upheaval ruined the profitability of North American manufacturing. Driven from business, he chose to study economics… to discover the cause of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting effect and it isn’t yet known if it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically inquire why will the Halving take place if the effects cannot be predicted. The solution is simple; it is pre-established. To offset the dilemma 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 achieved by cutting the reward given to miners in half every 4 decades. Thus, it’s an essential element of ‘Bitcoin’s existence rather than a decision.