Bitcoin is farther away from being The numeraire; not only can it be simply a number, much as Fiat… but its worth is measured 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 measured by a true, unchanging physical quantity. Gold is exceptional in storing worth for thousands of years. Nothing else in reach of humanity has this exceptional combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement 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 measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they could trade 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 is not even small 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 at the Fed’s ‘wallet’… what useful purpose would they serve? Now that you have read through this far, has that stirred your views in any way? You may already have guessed that bitcoin revolution richard branson is a large field with much to discover. Yes, it is true that so many find this and other related subjects to be of fantastic value. A lot of things can have an impact, and you should widen your scope of knowledge. So what we suggest is to really try to find out what you need, and that will usually be decided by your circumstances. The rest of our talk will add more to what we have mentioned so far.
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be used as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat supposedly loses value through ‘over-printing’…
We come to the main dilemma; why hunt For a ‘new money’ if we have the best cash, Gold? Fear of Gold confiscation? Lack 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, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is achieved, Gold will restart its early and vital role as fair money… and not a moment 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, so he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, in 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 detect the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it is not yet known whether it’s good or bad to ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, typically inquire why will the Halving take place if the consequences cannot be predicted. The solution is simple; it is pre-established. To offset the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a way that a total of 21 million coins could ever be issued, which is achieved by cutting down the reward given to miners in half every four decades. Thus, it is a vital part of ‘Bitcoin’s presence rather than a decision.