Bitcoin is further away from being The numeraire; not only can it be simply a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages 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 worth for thousands of years. Nothing else in reach of humankind 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 money. 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 fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement could very 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 step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate worth of this Bitcoin, no? This actually means is banks recognize that they might trade 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 is not even small change to the Fiat printers; it’s 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? The above really only just starts to scratch the surface of what is available concerning bitcoin revolution richard branson. Take a look at what is occurring on your end, and that may help you to refine what you need. Even though it is important to everybody concerned, there are important parameters you should keep in mind. The best strategy is to try to envision the effects each point could have on you. Here are a number of more equally important highlights on this important topic.
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth can they be applied as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? 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 start to lose value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key dilemma; why hunt To get a ‘new money’ if 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 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… without IRS, border guards, TSA thugs… on and on. A world of liberty 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, 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 experience with financial devastation.
As an engineer and engineer, he Conducted a thriving family business in Canada for decades, at its peak using over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven from business, he decided to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ awarded to miners after their successful creation of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it is not yet known if it’s good or bad to ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, usually ask why will the Halving occur if the effects cannot be predicted. The answer is simple; it’s pre-established. To counter the issue of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins would ever be issued, which can be achieved by cutting down the reward given to miners in half each 4 decades. Thus, it is an essential element of ‘Bitcoin’s presence rather than a choice.