Bitcoin is farther away from being The numeraire; not just is it a number, much as Fiat… but its worth is quantified in Fiat! Even though 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 real, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in reach of humankind has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be questionable; the intent is to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the true worth of the Bitcoin, no? What this really means is banks realize that they could trade Fiat for Bitcoins… and also to actually 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 purchased and locked up at the Fed’s ‘wallet’… what practical purpose would they serve? There simply is no denying about the potential of bitcoin revolution gordon ramsay to dramatically alter some situations is incredible. It can be challenging to cover all possible examples simply because there is so much involved. So we feel this is just an excellent time to take a break and examine what has just been covered. We are highly confident about the ability of what we offer, today, to make a difference. As usual, we generally save the very best for last.
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of trade? And, what could 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 then, by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value through ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ if we have the best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The solution isn’t 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 restart its ancient 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, so he’s intimate experience with financial destruction.
As an engineer and engineer, he Conducted a thriving family business in Canada for decades, at its peak employing over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven out of business, he decided to study economics… to detect the origin of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful development of this new block is cut in half. Therefore, this phenomenon will reduce the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it is not yet known whether it’s good or bad for ‘Bitcoin’.
People, who Aren’t Knowledgeable about ‘Bitcoin’, usually ask why will the Halving occur if the consequences cannot be predicted. The answer is simple; it is pre-established. To counter the dilemma of currency devaluation, ‘Bitcoin’ mining was designed in such a manner that a total of 21 million coins would be issued, which is accomplished by cutting down the reward given to miners in half each 4 decades. Therefore, it is a vital part of ‘Bitcoin’s existence and not a choice.