Bitcoin is farther away from being The numeraire; not only can it be simply a few, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, 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 exceptional in being quantified by a real, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in reach of humanity has this exceptional combination of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate worth of this Bitcoin, no? What this actually means is banks realize that they might exchange Fiat to get Bitcoins… and to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest change to the Fiat printers; it’s 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 could they serve? We believe the above thoughts and tips must be taken into account in any discussion on bitcoin revolution gordon ramsay. But there is a great deal more that you would do well to learn.
They will serve you well, however, in more ways than you realize. Getting a high altitude snapshot will be of immense benefit to you. But we have kept the best for last, and you will know what we mean once you have read through.
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of trade? And, what would 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 printing parade? But , from the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main dilemma; why search For a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an 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 arrangement, one without Fiat, with no Government spying, without drones and swat teams… with no 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 minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he’s intimate encounter with financial devastation.
As an engineer and engineer, he Ran a successful 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 chose to study economics… to detect the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have an enduring impact and it isn’t yet known if it is good or bad for ‘Bitcoin’.
People, who are not familiar with ‘Bitcoin’, usually ask why does the Halving take place if the effects 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 could ever be issued, which can be accomplished by cutting the reward given to miners in half every 4 years. Therefore, it’s an essential element of ‘Bitcoin’s presence and not a choice.