Bitcoin is farther away from being The numeraire; not only is it simply a number, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving worth for thousands of years. Nothing else in reach of humanity has this unique combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being cash. Its advantages will also be questionable; the intent would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? What this actually means is banks recognize that they might trade 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 modest change to the Fiat printers; it’s about 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? All right, we have gone over the first couple of points concerning bitcoin revolution gordon ramsay, of course you realize they play a significant role. They are by no means all there is to know as you will quickly discover. However, you will find them to be of great utility in your research for information. However, we always stress that anyone takes a closer look at the general big picture as it applies to this subject. We are not done, and there are just a couple of very strong suggestions and tips for you.
There would be no Bitcoins left in Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth can they be applied 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 into… 52 million? To 104 million? Combine the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come to the key dilemma; why search For a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new form of cash, but in 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 world of independence not tyranny. Once this is achieved, Gold will restart its ancient and critical role as fair 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 consequent Hungarian hyperinflation, thus he has intimate encounter with financial destruction.
As an engineer and engineer, he Ran a successful family business in Canada for decades, in its peak using over 100 workers, until economic upheaval destroyed the sustainability of North American production. Driven out of business, he chose to study economics… to detect the cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Thus, 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 impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, typically ask why does 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 each four decades. Therefore, it’s a vital part of ‘Bitcoin’s presence rather than a decision.