Bitcoin is farther away from being The numeraire; not just can it be a number, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even though it succeeds to replace the Dollar as the accepted ‘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 preserving worth for thousands of years. Nothing else in reach of humankind has this exceptional combination of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being money. Its advantages will also be questionable; the intent would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may 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 this Bitcoin, no? What this really means is banks recognize that they might exchange Fiat to get Bitcoins… and 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 about 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 practical purpose could they serve? Now that you have read through this far, has that stirred your opinions in any way? You may already have guessed that bitcoin revolution richard branson is a large field with much to discover. Yes, it is true that so many find this and other similar subjects to be of great value. Continue reading and you will see what we mean about crucial nuances you need to know about. Do you know precisely the kind of info that will help? If not, then you should discover more about this. You will find out the rest of this article adds to the foundation you have built up to this point.
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key issue; why search For a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer isn’t in a new sort of money, 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 huge liberty not tyranny. Once this is accomplished, Gold will restart its early and critical role as honest money… and not a minute before.
Rudy J. Fritsch was born 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, thus he’s intimate encounter with financial destruction.
As an engineer and engineer, he Conducted a successful family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval ruined the profitability of North American production. Driven out of business, he decided to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners after their successful creation of this new block is cut in half. Therefore, this phenomenon will reduce the given ‘Bitcoins’ out of 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 Aren’t familiar with ‘Bitcoin’, typically inquire why does the Halving occur if the consequences 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 manner that a total of 21 million coins could be issued, which is achieved by cutting down the reward given to miners in half every 4 years. Therefore, it is an essential part of ‘Bitcoin’s existence and not a decision.