Bitcoin is further away from being The numeraire; not only can it be simply a number, 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 succeeds to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is unique in preserving value for centuries. Nothing else in touch of humanity has this exceptional combination of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being money. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that 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, some central banks have declared 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 legitimate worth of this Bitcoin, no? What this actually means is banks realize that they could exchange Fiat for Bitcoins… and also to really 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 from the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose would they serve? Now that you have read this far, has that stirred your views in any way? There is a great deal within the body of knowledge surrounding bitcoin revolution richard branson. A lot of people have found certain other areas are helpful and contribute excellent information. You should be careful about making too many assumptions until the big picture is a lot more clear. So what we advise is to really try to discover what you need, and that will usually be decided by your circumstances. The rest of our talk will add more to what we have mentioned so far.
There would be no Bitcoins left in Circulation; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be applied as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat allegedly loses value through ‘over-printing’…
We come to the main issue; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? All of the above. The answer isn’t in a new form of cash, but in 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 world of independence not tyranny. Once this is achieved, Gold will resume its early and vital role as honest money… and not a moment 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 resultant Hungarian hyperinflation, thus he has intimate encounter with financial destruction.
As an engineer and engineer, he Conducted a successful family business in Canada for years, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven out of business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners following 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 is not a new thing, however it does have an enduring effect and it isn’t yet known if it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, typically ask why does the Halving take place if the effects cannot be predicted. The answer is simple; it’s pre-established. To offset 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 can be achieved by cutting the reward given to miners in half each four decades. Therefore, it’s an essential element of ‘Bitcoin’s presence rather than a choice.