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 that 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 digital money. At this time, digital money flies beneath the radar since it isn’t recognized even with all the newest 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 most of us agree to this and have trust in the money. What is the difference, it is an issue of confidence right?
Alright so, let’s say that the regulators, FBI, or another branch of government interferes and files charges – if they record criminal charges that somebody defrauded someone else then how much defrauding was demanded? If the government law and justice department put a dollar amount number to that, they are inadvertently agreeing that the digital currency is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then some fraud that might or might not have occurred sets the whole concept back a ways, and the press will continue to drive down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement people, and they cannot look another way or deny 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 concept, but his electronic money theory may also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the global economy handle that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new shift in how we view monetary price, riches, online transactions and the way the real world will mind-meld to our prospective blurred reality. I simply don’t see a lot of folks thinking here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please think about all of this and consider it. crypto genius is an area that is just filled with helpful information, as you just have read. One thing we tend to think you will discover is the right info you need will take its cues from your current situation. There are always some things that will have more of an influence than others. The best approach is to try to imagine the effects each point could have on you. The rest of this article will present you with a few more very hot ideas about this.
Bitcoin is farther away from being The numeraire; not only can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it manages 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 centuries. Nothing else in touch of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the intent is to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement could very 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 Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? This really means is banks realize that they might exchange 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 from the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left Circulation; a perfect 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? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come into the main issue; why hunt For a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The answer is not in a new form of money, but at a new social structure, one without Fiat, without Government spying, without drones and swat teams… without 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 minute before.
Rudy J. Fritsch was born 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, so he’s intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a successful family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he decided to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is 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’.