Bitcoin is farther away from being The numeraire; not just is it simply a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is unique in storing value for centuries. Nothing else in touch of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has Some 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 restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? What this actually means is banks realize that they might exchange Fiat for Bitcoins… and also to really buy up the 26 million Bitcoins projected 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 in the Fed’s ‘wallet’… what useful purpose would they serve? What have just discussed is crucial for your knowledge about bitcoin revolution richard branson, but there is a lot more to think about. They are by no means all there is to know as you will easily discover.
They will serve you well, however, in more ways than you know. Getting a high altitude snapshot will be of immense value to you. So we will give you a few more important points to think about.
There would be no Bitcoins left Circulation; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly 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, by the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come to the key issue; why hunt For a ‘new money’ if we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The solution isn’t in a new form of money, but in 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 huge independence not tyranny. Once this is accomplished, Gold will restart its early and vital role as fair money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate encounter with financial destruction.
As an engineer and entrepreneur, he Ran a successful family business in Canada for years, in its peak employing over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven out of business, he chose to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect 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 awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have a lasting impact and it isn’t yet known if it is good or bad for ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, usually ask why will the Halving occur if the effects cannot be predicted. The solution is simple; it is 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 accomplished by cutting down the reward given to miners in half each four decades. Thus, it is a vital part of ‘Bitcoin’s existence and not a decision.