Bitcoin is farther away from being The numeraire; not only is it 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 if it succeeds to replace the Dollar as the approved ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in touch of humanity has this exceptional blend of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be 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 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 announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true worth of the Bitcoin, no? This actually means is banks realize that they might exchange Fiat to get Bitcoins… and also to really 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 by the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose would they serve? Ideally, just as with so many other areas regarding bitcoin revolution richard branson, you will need to pay more attention to some things than others. Do take a close look at what you need, and then make a determination regarding how much different things apply to you. But we are not finished, yet, and there is usually much more to be revealed. The last half of the article will offer you a lot more solid info about this. Even following what is next, we will not quit there because the very best is but to come.
There would be no Bitcoins left Flow; a perfect corner. If there are no 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 increase 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 lose value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer isn’t in a new sort of cash, but in a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge liberty 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 born 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 entrepreneur, he Conducted a successful family business in Canada for years, in its peak employing over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. 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’ given to miners after their successful creation of the new block is cut in half. Thus, this phenomenon will reduce 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 whether it’s good or bad for ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, typically inquire why does the Halving occur if the effects cannot be predicted. The solution 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 the reward given to miners in half every four decades. Therefore, it is an essential part of ‘Bitcoin’s presence rather than a choice.