Bitcoin is farther away from being The numeraire; not just can it be a few, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, 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 measured by a true, unchanging physical quantity. Gold is unique in preserving value for centuries. Nothing else in reach of humankind has this unique blend of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages will also be questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very 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 step 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 realize 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 is not even small change to the Fiat printers; it’s roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve? bitcoin revolution richard branson is an area that is just loaded with helpful details, as you just have read. As always, though, much of what you decide you need is totally dependent on what you want to accomplish. There are probably more than a few specifics you have to pay close attention to on your part. No matter what, your careful consideration to the matter at hand is one thing you and all of us have to do. But let’s keep going because we have some exceptional tips for you to give serious attention.
There would be no Bitcoins left in Circulation; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come into the main dilemma; why hunt To get a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution isn’t in a new form of money, but at a new social arrangement, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is accomplished, Gold will resume its ancient 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 consequent Hungarian hyperinflation, thus he has intimate experience with financial devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for years, in its peak employing over 100 workers, until economical upheaval destroyed the profitability of North American production. Driven from business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners following their successful creation of this new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have a lasting effect and it isn’t yet known if it’s good or bad for ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, typically inquire why does the Halving take place if the consequences cannot be predicted. The answer is simple; it’s pre-established. To counter 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 is accomplished by cutting down the reward given to miners in half every four years. Thus, it’s an essential element of ‘Bitcoin’s existence rather than a decision.