What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is this only an anticipated evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I had.
Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic money. At this time, digital currency flies under the radar since it is not recognized even with all the new Too Big To Fail regulations on banks, etc.. How can a digital money have value? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it is worth what it represents if most of us agree to that and have trust in the money. What’s the difference, it is an issue of trust right?
Okay so, let us say that the regulators, FBI, or another branch of government complies and documents charges – should they file criminal charges that somebody defrauded somebody else then how much defrauding was demanded? In the event the government law and justice department place a dollar amount number to this, they’re inadvertently agreeing that the electronic money is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then any fraud that may or may not have occurred sets the whole concept back a ways, and the media will continue to drive down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for your government, authorities, and enforcement people, and they cannot look the other way or deny that this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but is not this how it usually begins. Once it is regulated credibility is given to the notion, but his electronic currency concept may also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for that as well. Can the international market handle that level of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and how the real world will mind-meld to our future blurred reality. I just don’t see a lot of people believing here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please consider all of this and consider it. Do you have any ideas at this point? crypto genius software is a huge area with many more sub-topics you can read about. It is really comparable to other related topics that are important to people. A lot of things can have an effect, and you should expand your scope of knowledge. So what we suggest is to really try to find out what you need, and that will usually be determined by your circumstances. You will find out the rest of this article contributes to the foundation you have built up to this point.
Bitcoin is further away from being The numeraire; not just is it a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never 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 thousands of years. Nothing else in touch of humanity has this exceptional combination of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being cash. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, a few central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they could trade Fiat for Bitcoins… and also to really 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’s about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Flow; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main dilemma; why search For a ‘new money’ if we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The answer isn’t in a new form of cash, 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 world of liberty not tyranny. Once this is accomplished, Gold will restart its early and critical role as fair money… and not a minute before.
Rudy J. Fritsch was created 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, thus he has intimate experience with financial devastation.
As an engineer and engineer, he Conducted a thriving family business in Canada for years, in its peak using over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven from business, he chose to study economics… to detect the origin of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners following their successful development of this new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have a lasting impact and it isn’t yet known if it is good or bad to ‘Bitcoin’.