Bitcoin is farther away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though 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 quantified by a real, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in touch of humankind has this unique blend of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages are also questionable; the aim is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins might 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 true worth of the Bitcoin, no? What this actually means is banks realize that they could exchange Fiat to get Bitcoins… and also to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it is 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 useful purpose would they serve? We want to say a fast word about our discussion re bitcoin revolution richard branson. One thing we tend to think you will discover is the correct info you need will take its cues from your current situation. There are possibly more than a few particulars you have to pay close attention to on your side. You realize that you are ultimately the one who knows which will have the greatest impact. Here are several more equally important highlights on this significant topic.
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of exchange? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key dilemma; why search For a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The answer is not in a new form of cash, but at a new social structure, one without Fiat, without 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 early and vital role as fair 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 consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.
As an engineer and engineer, he Conducted a successful family business in Canada for decades, at its peak using over 100 workers, until economic upheaval ruined the sustainability of North American manufacturing. Driven out of business, he decided to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it isn’t yet known whether it’s good or bad for ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, typically ask why will the Halving take place if the consequences cannot be predicted. The answer is simple; it’s pre-established. To offset 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 is achieved by cutting the reward given to miners in half each 4 decades. Therefore, it’s a vital part of ‘Bitcoin’s existence rather than a choice.