Bitcoin is farther away from being The numeraire; not only is it simply a number, 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 manages to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in reach of humanity has this unique blend of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages will also be questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm makes harder and harder to fix, 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 declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate value of the Bitcoin, no? This actually means is banks realize that they could exchange Fiat to get 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 is roughly 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? Do you have any thoughts at this stage? There is a great deal in the body of information surrounding bitcoin revolution richard branson. Yes, it is true that so many find this and other similar subjects to be of great value. You should be careful about making too many presumptions until the big picture is a lot more clear. If you are unsure about what is needed for you, then just take a closer look at your particular situation.
The concluding talk will solidify what we have revealed to you up to this point.
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be used as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , by the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the key issue; why search To get a ‘new money’ if we have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer is not in a new form of money, but in a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is achieved, Gold will resume its early and vital role as honest money… and not a moment 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 resultant Hungarian hyperinflation, thus he has intimate encounter with financial devastation.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak employing over 100 workers, until economic upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful creation of this new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have a lasting impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.
People, who are not Knowledgeable about ‘Bitcoin’, usually ask why will the Halving take place if the effects 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 ever be issued, which can be accomplished by cutting down the reward given to miners in half every four years. Thus, it’s a vital element of ‘Bitcoin’s presence and not a choice.