Bitcoin is further 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 recognized as a medium of exchange, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humankind has this exceptional blend of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being cash. Its advantages will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of this Bitcoin, no? This actually means is banks realize that they could trade Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins projected 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 by the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what practical purpose could they serve? We are offering you solid pieces of advice here, but do be aware that some are more critical to understanding bitcoin revolution gordon ramsay. However, the bottom line is how you want to use it, and how much of it will impact your situation. Yet you do realize there is much more to be discovered about this. We are saving the best for last, and you will be delighted at what you will find out. What you are about to read will significantly enhance your knowledge, and we will go even beyond that point, too.
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be applied as a medium of exchange? And, what could 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? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat allegedly loses value through ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ when we have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new sort of cash, but at 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 independence not tyranny. Once this is accomplished, Gold will resume its early and vital role as honest money… and not a minute before.
Rudy J. Fritsch was created 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 Ran a thriving family business in Canada for years, at its peak employing over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven from business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners following their successful creation of the 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 an enduring effect and it is not yet known if it’s good or bad for ‘Bitcoin’.
People, who Aren’t familiar with ‘Bitcoin’, typically inquire why will the Halving occur if the effects cannot be predicted. The answer is simple; it’s pre-established. To counter the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a manner that a total of 21 million coins could ever be issued, which is accomplished by cutting the reward given to miners in half every four years. Therefore, it’s a vital element of ‘Bitcoin’s existence and not a decision.