Bitcoin is further away from being The numeraire; not only is it simply a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is exceptional in preserving worth 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 claim to being cash. Its advantages will also be questionable; the aim would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? This actually means is banks realize that they could exchange Fiat to get Bitcoins… and to actually buy up the 26 million Bitcoins projected 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 could they serve? We have covered a few basic things about bitcoin revolution richard branson, and they are important to consider in your research. There is a remarkable amount you really should take the time to know about. We believe you will find them to be very helpful in a lot of ways. Do consider the time and make the effort to discover the big picture of this. So we will provide you with a few more important points to think about.
There would be no Bitcoins left Flow; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key issue; why hunt For a ‘new money’ when we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The answer is not 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 independence not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as honest 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 consequent Hungarian hyperinflation, so he has intimate experience with financial devastation.
As an engineer and entrepreneur, he Ran a successful family business in Canada for years, at its peak employing over 100 workers, until economic upheaval ruined the profitability of North American manufacturing. Driven out of business, he decided to study economics… to discover the origin of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners following their successful development of this new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it is not yet known if it’s good or bad to ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, typically inquire why will the Halving occur if the consequences cannot be predicted. The solution is simple; it’s pre-established. To counter the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a manner that a total of 21 million coins could ever be issued, which can be accomplished by cutting down the reward given to miners in half every four years. Therefore, it’s an essential element of ‘Bitcoin’s presence and not a choice.