As an engineer and engineer, he Conducted a thriving family business in Canada for years, in its peak using over 100 workers, until economical upheaval ruined the sustainability of North American production. Driven from business, he decided to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful creation of this new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have a lasting effect and it isn’t yet known whether it is good or bad to ‘Bitcoin’.
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – if they file criminal charges that somebody defrauded someone else then how much defrauding was demanded? In the event the government law and justice department place a dollar sum number to that, they’re inadvertently agreeing that the electronic money is actual, and it’s a value, thus, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the whole concept back a long way, and the press will continue to drive down the trust of all digital or crypto-currencies.
So, it is a catch-22 for the government, authorities, and enforcement people, and they cannot look the other way or deny that this trend no more. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it’s regulated credibility is given to the notion, but his digital money concept may also undermine the whole One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for this as well. Can the international market handle that degree of disruption? Stay tuned, I guess we shall 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 the way the actual world will mind-meld to our prospective blurred reality. I just don’t see a lot of folks believing here, but everybody needs to, one misstep and we can all be in a world of hurt – all of humanity that is. Please think about all this and think on it. What have just talked about is crucial for your knowledge about crypto genius erfahrungen, but there is much more to think about. There is a remarkable amount you really should take the time to find out about. We believe you will find them to be very helpful in a lot of ways. Do consider the time and make the attempt to discover the big picture of this. So we will give you a few more important points to think about.
Bitcoin is farther away from being The numeraire; not just can it be simply a few, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is exceptional in preserving value for thousands of years. Nothing else in reach of humanity has this exceptional blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its 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 makes harder and harder to solve, then impossible following the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may 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 true value of the Bitcoin, no? This actually means is banks recognize that they could exchange Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it is roughly a week’s worth of printing by 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 Flow; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be used as a medium of trade? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ if we already have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution is not in a new form of cash, but at a new social arrangement, one without Fiat, without 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 early and critical role as honest money… and not a minute 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 consequent Hungarian hyperinflation, thus he has intimate encounter with financial destruction.