What do you say to that? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were right? Can they get the last laugh, or is this only an anticipated evolutionary process of disruption as all the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic money. At this time, digital money flies beneath the radar as it is not recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital currency 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 signifies if we all agree to that and have confidence in the money. What is the difference, it’s an issue of trust right?
Alright so, let’s say that the authorities, FBI, or another branch of government interferes and files charges – should they file criminal charges that someone defrauded someone else then how much defrauding was demanded? If the government law and justice department place a dollar amount number to this, they are inadvertently agreeing that the digital currency is actual, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud which may or may not have occurred sets the whole notion back a long way, and the media will continue to push down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for the government, regulators, and enforcement folks, and they cannot look another way or deny this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his digital currency theory could also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international market manage that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new shift in how we see monetary value, riches, online transactions and how the actual world will mind-meld into our prospective blurred reality. I just don’t see many folks thinking here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please consider all of this and consider it. While this is all appropriate to your discovery, a few items about crypto genius software carry more weight than others.
But that can vary a bit, and it really just will depend on how you want to use the information. We really are just getting started here, and hopefully you will be thrilled about what more is in store. Keep reading to discover even more, and what we will do is include a few more critical topics and recommendations for you to consider. Even after what is next, we will not stop there because the very best is but to come.
Bitcoin is further away from being The numeraire; not just is it a number, much as Fiat… but its value 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 accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in preserving worth for thousands of years. Nothing else in touch of humanity has this exceptional blend of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being cash. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few 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 ‘big banks’ appear to be accepting the legitimate worth of this Bitcoin, no? This actually means is banks recognize that they could trade Fiat to get Bitcoins… and also to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it’s roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the key issue; why search For a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The solution isn’t in a new form of money, 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 huge liberty not tyranny. Once this is achieved, Gold will resume its ancient and vital role as fair money… and not a moment 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 devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval destroyed the sustainability of North American production. Driven from business, he decided to study economics… to detect the cause of the 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 given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have a lasting effect and it is not yet known if it is good or bad to ‘Bitcoin’.