Bitcoin is farther away from being The numeraire; not only is it a few, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in preserving worth for thousands of years. Nothing else in touch of humankind has this exceptional blend of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? This actually means is banks recognize that they might exchange Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it is roughly 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 useful purpose would they serve? The effects of bitcoin revolution richard branson, not only on you but many others, is a fact that has to be recognized. It can be challenging to cover all possible scenarios simply because there is so much involved. We will begin the rest of our discussion right away, but sometimes you have to stop and let things sink in a little bit. This is significant information that can help you, and there is no questioning that. If you proceed, we know you will not be disappointed with what we have to provide in this article.
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of trade? 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 print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main issue; why search To get a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The solution is not in a new form of money, but in a new social arrangement, one without Fiat, without 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 resume its early and critical role as honest money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate encounter with financial devastation.
As an engineer and engineer, he Ran a successful family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however it does have a lasting impact and it is not yet known whether it is good or bad to ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, usually inquire why will the Halving take place if the consequences cannot be predicted. The answer is simple; it’s pre-established. To counter the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins could ever be issued, which is accomplished by cutting the reward given to miners in half each 4 decades. Therefore, it’s an essential part of ‘Bitcoin’s existence rather than a decision.