On 7. May 2019 BTC$5.897,00 3.77% part Facebook Twitter LinkedIn xing mail
"time is money": money is a Medium, in order to quantify made to work and to save. In the theory of money, the literature speaks of the so-called "memory function". Individuals do not trust that the value of money lessened by means of in the long run significantly, and are therefore willing to exchange their limited time on earth for money (or work). Anyone who is looking to Venezuela, Argentina or Zimbabwe, the notes that are to be expected with the value storage function of money by means of not always is. Massive Dilution of the money supply in the medium term lead to rising prices and in the long term to the economic crisis, which destroyed confidence in the currency completely. The result of Hyperinflation: a complete devaluation of money and, as a result, the destruction of the savings of entire generations is not uncommon.
Central banks a monopoly on the creation of money
there is A high Inflation is often a result of expansive monetary policy of Central banks. As a Monopolist Central banks to steer the interest rate and take as a direct influence on the amount of money in circulation, i.e. the rate of inflation. In doing so, you have – depending on legislation – largely a free Hand.
Although the inflation rates in democratic countries of the West low, aiming for the European Central Bank (ECB) has an inflation rate of just under two per cent. This is due to the stabilizing effect of monetary policy is acceptable. However, the annual devaluation of the money of about two percent means a twenty per cent loss of value of Savings after ten years. And more: The low level of interest rates on demand deposits, or money market accounts, drive savers to riskier assets. Who realizes that the real value of the held money dissolves with time in air, parks richer the money in income – but also risky – assets.
Not to be denied, for example, in the context of low interest rates policy and rising real estate. "Concrete gold" is as a store of Value and object of speculation.Bitcoin as hard money alternative
fortunately, there is Bitcoin. Because, for the first Time in the history of mankind, there is a Well, the proof is exactly like the human life time finally. With mathematical certainty it can be shown that it will never be more than 21 million units of digital gold will circulate. For the store of value function of money by means of this is an unbeatable Argument. Finally, investors know at the time of your purchase exactly what share of a finite Asset you have accumulated with the purchase of the battery. The transparency of the Blockchain.
Who currently holds, for example, only a single Bitcoin, know that it can be no more than 21 million individuals who hold a similar share. Members of the "21-Million-club" is already one of the wealthiest 2.3 percent of all Bitcoin holders.The Bitcoin Rich List, which lists the wealthiest Bitcoin owners. Source: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html. Difficulty Adjustment as a scarcity of guarantee
All historical funds have one thing in Common: as soon As mankind agrees to it, it increases as a store of Value and medium of exchange, logically, your course. Finally, the number is increasing with increasing user demand and thus the price. However, this has the consequence that the supply side responds: A greater demand generates a higher offer, that is to say Inflation.
unlike all of the unprecedented money supply increase in case of increased demand in the Bitcoin network is not possible. May be a high demand for Bitcoin leads to the entry of miners. Due to the Difficulty Adjustments, the Bitcoin money supply is not increased thereby. The only Difficulty, so the computational difficulty of solving the cryptographic Proof-of-Work puzzles is on the rise. On average, a Block comes in spite of the increased Hash Power every ten minutes to the network and the quantity of money increases (currently) to 12.5 BTC.
In Economics, the price elasticity of supply, so the supply-side response to demand shocks and the Bitcoin to be even smaller than in the case of Gold. In short: An increase in the demand is necessarily correlated be positive with the course.the Stock-to-Flow-Rate-decreasing – A bullishes Signal for Bitcoin
Bitcoins value proposition as the rarest Good of humanity (in addition to the lifetime), also manifests itself in the ratio of existing Supply (Stock) and the percentage of added amount of money (Flow). The ratio of Stock and Flow is called Stock-to-Flow-Rate; and in the case of Bitcoin is extremely low.
Currently it is 25 (17.5 million BTC per year, 0.7 million added = SF 25). So, Bitcoin is, in terms of the scarcity of silver comparable to that after the next Reward Halving (every four years, the Coinbase Reward decreases per Block of 50 per cent) is the SF Rate 50 and is thus almost as high as that of Gold. The higher the SF Rate, the more severe the existing money supply is watered down.
market analyst @planB has cobbled it into a model Course, we focus at this point.
IMO #bitcoin Stock-to-Flow based models are better than time-based models. Both seem to fit past data equally well, but I think time-based models may underestimate in the future. Time will tell. pic.twitter.com/tp9azukA59
planB (@100trillionUSD) May 5, 2019
For the first Time in history, people have the option to save the value in an Asset, the undetectable. The more users Bitcoin generate, the stronger the trust in its store of value function and the higher the price rises. Bitcoin is, in fact, digital Gold.
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