Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never have 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 centuries. Nothing else in touch of humanity has this unique blend of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the intent would be to limit the ‘mining’ of Bitcoins into 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 could very well be the death knell of Bitcoin; currently, 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’ seem to be accepting the true value of the Bitcoin, no? This actually means is banks recognize that they could exchange Fiat for Bitcoins… and also to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it’s 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? Has what you have found added to your prior knowledge? No question, we are just getting started with all that can be acknowledged about bitcoin revolution richard branson. We have discovered other folks think these points are valuable in their search. Sometimes it can be tough to get a clear picture until you discover more. Do you know exactly the kind of info that will help? If not, then you should discover more about this. The rest of our talk will add to what we have mentioned so far.
There would be no Bitcoins left in Flow; an ideal corner. If there aren’t any Bitcoins in circulation, 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 boost the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat allegedly loses value through ‘over-printing’…
We come into the main issue; why hunt To get a ‘new money’ if 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 laws? All of the above. The solution isn’t in a new sort of cash, but at 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 huge liberty not tyranny. Once this is achieved, Gold will restart its ancient and critical role as fair money… and not a moment before.
Rudy J. Fritsch was born 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, so he has intimate experience with financial devastation.
As an engineer and entrepreneur, he Conducted a successful family business in Canada for decades, at 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 cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ from 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’s good or bad to ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, usually inquire why will the Halving take place if the effects cannot be predicted. The solution is simple; it’s pre-established. To counter the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins would ever be issued, which can be accomplished by cutting the reward given to miners in half each 4 decades. Thus, it’s a vital element of ‘Bitcoin’s existence rather than a choice.