Bitcoin is further away from being The numeraire; not only can it be a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even if it manages 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 thousands of years. Nothing else in reach of humanity has this unique combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages will also be questionable; the aim is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate worth of this Bitcoin, no? This really means is banks recognize that they might 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 is not even modest 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 at the Fed’s ‘wallet’… what useful purpose would they serve? So you can see that bitcoin revolution richard branson is a subject that you have to be mindful when you are finding out about it. One thing we tend to think you will discover is the right info you need will take its cues from your current predicament. Just be sure you pick those items that will serve your needs the most. The best approach is to try to envision the effects each point could have on you. The latter half of our talk will center on a few highly pertinent issues as they concern your possible circumstances.
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be applied as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , from the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the main issue; why search For a ‘new money’ if we have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The solution is not in a new form of money, but at a new social arrangement, one without Fiat, without 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 restart its early and critical role as fair money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate experience with financial destruction.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven out of business, he decided to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners after their successful creation of the new block is cut in half. Therefore, this phenomenon will cut 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 is good or bad to ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, typically inquire why does the Halving occur if the effects cannot be predicted. The solution 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 ever be issued, which can be achieved by cutting down the reward given to miners in half every four decades. Therefore, it is an essential part of ‘Bitcoin’s existence rather than a decision.