Bitcoin is farther away from being The numeraire; not only can it be a number, 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 have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humankind has this unique blend of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being cash. Its advantages are also questionable; the intent 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 hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement 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 Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true worth of the Bitcoin, no? What this really means is banks recognize that they might 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’s roughly 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 useful purpose could they serve? The relative impact of bitcoin revolution richard branson on your situation can be dramatic and cause issues of all kinds. No one really can adequately address all the different circumstances that could arise with this particular topic. We will commence the rest of our conversation right away, but sometimes you have to stop and let things sink in a little bit. In light of all that is offered, and there is a lot, then this is a perfect time to be reading this. As usual, we typically save the very best for last.
There would be no Bitcoins left in Flow; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of exchange? And, what could 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? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value through ‘over-printing’…
We come into 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 in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer isn’t in a new sort of money, 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 restart its ancient and critical role as honest money… and not a moment before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial destruction.
As an engineer and engineer, he Ran a thriving family business in Canada for years, in its peak employing over 100 workers, until economic upheaval ruined the profitability of North American production. Driven from business, he chose to study economics… to discover the cause of this 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. Thus, this phenomenon will cut the awarded ‘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 is good or bad to ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, usually inquire why will the Halving occur if the consequences cannot be predicted. The answer is simple; it is pre-established. To offset the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a manner 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 each 4 years. Thus, it is a vital element of ‘Bitcoin’s presence and not a choice.