Bitcoin is further away from being The numeraire; not just can it be a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is unique in storing value for thousands of years. Nothing else in touch of humankind has this unique combination of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being cash. Its advantages will also be questionable; the aim is to limit the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm makes 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 ‘large banks’ seem to be accepting the true worth of this Bitcoin, no? This really means is banks recognize that they might trade Fiat for Bitcoins… and also 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’s roughly a week’s worth of printing by 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 quick word about our discussion re bitcoin revolution richard branson. One thing we tend to believe you will discover is the correct info you need will take its cues from your current situation. There are always some things that will have more of an effect than others. No matter what, your careful attention to the matter at hand is one thing you and all of us have to do. But let’s keep going due to the fact we have some exceptional tips for you to give considerable attention.
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in circulation, 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? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ when we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The answer isn’t in a new sort of cash, but at a new social arrangement, 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 accomplished, Gold will restart its early and critical role as fair money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he has intimate encounter with financial devastation.
As an engineer and engineer, he Conducted a thriving family business in Canada for decades, in its peak using over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven from business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however it does have a lasting effect and it is not yet known whether it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically ask why does the Halving occur if the consequences cannot be predicted. The answer is simple; it is pre-established. To counter the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a manner that a total of 21 million coins would be issued, which is achieved by cutting down the reward given to miners in half every four years. Thus, it is an essential element of ‘Bitcoin’s presence rather than a choice.