Bitcoin is further away from being The numeraire; not only can it be a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in reach of humanity has this exceptional blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? What this really means is banks realize that they could trade 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 isn’t even modest change to the Fiat printers; it’s roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve? We want to say a quick word about our discussion re bitcoin revolution gordon ramsay. One thing we tend to believe you will discover is the right info you need will take its cues from your current predicament. There are always some points that will have more of an influence than others. You understand that you are ultimately the one who knows which will have the greatest impact. We will now move forward and talk more about a few points in depth.
There would be no Bitcoins left in Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value through ‘over-printing’…
We come to the main dilemma; why search To get a ‘new money’ when we already have the very 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 solution isn’t in a new form of money, 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 huge independence not tyranny. Once this is accomplished, Gold will restart its ancient and critical role as fair money… and not a minute 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 consequent Hungarian hyperinflation, so he has intimate experience with financial destruction.
As an engineer and engineer, he Ran a successful family business in Canada for years, in its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American production. Driven from business, he chose to study economics… to detect the cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners after their successful creation of the new block is cut in half. Thus, 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 effect and it isn’t yet known if it’s good or bad to ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, typically inquire why does the Halving take place if the consequences cannot be predicted. The answer is simple; it is pre-established. To counter 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 achieved by cutting the reward given to miners in half every 4 years. Therefore, it is a vital element of ‘Bitcoin’s presence rather than a decision.