Bitcoin is further away from being The numeraire; not just is it a few, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in storing value for centuries. Nothing else in reach of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to solve, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few 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 ‘big banks’ seem to be accepting the legitimate worth of this Bitcoin, no? What this actually 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 small change to the Fiat printers; it is about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve? There just is no denying about the potential of bitcoin revolution gordon ramsay to dramatically alter some circumstances is incredible. There are so many possibilities and variations – twists and turns, that hopefully you see how difficult it can be to include all bases. We will begin the rest of our discussion right away, but sometimes you have to stop and let things sink in a little bit. After all we have read, this is appropriate and powerful information that should be regarded. Our last few items can really prove to be powerful considering the overall.
There would be no Bitcoins left Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth can 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 to… 52 million? To 104 million? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the main dilemma; why search To get a ‘new money’ if we already have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The answer is not in a new form of money, but in a new social structure, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is achieved, Gold will restart its ancient and critical 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, thus he’s intimate experience with financial destruction.
As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven out of business, he chose to study economics… to discover the cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners after their successful creation of this new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘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 if it’s good or bad for ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, usually inquire why will the Halving take place if the effects cannot be predicted. The answer is simple; it is pre-established. To offset 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 accomplished by cutting the reward given to miners in half every 4 years. Therefore, it’s a vital element of ‘Bitcoin’s presence and not a choice.