What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Can they get the last laugh, or is this just 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’s say somebody hacked the system or stole the digital currency. At this time, digital money flies beneath the radar since it isn’t recognized even with all of 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’s not, but it’s worth what it signifies if most of us agree to that and have trust in the currency. What’s the difference, it is a matter of confidence right?
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – if they record criminal charges that somebody defrauded someone else then how much defrauding was demanded? If the government enforcement and justice department place a dollar sum number to this, they are inadvertently agreeing that the electronic currency is real, and it has a value, consequently, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the entire notion back a long way, and the press will continue to push down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for the government, regulators, and enforcement people, and they cannot look the other way or deny this trend no more. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually starts. Once it is regulated credibility is given to the concept, but his electronic money concept could also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international economy handle that degree of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new shift in how we see monetary price, riches, online transactions and how the real world will mind-meld into our prospective blurred reality. I simply don’t see a lot of people believing here, but everybody should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all this and think on it. Do you have any ideas at this stage? crypto genius software is an area that offers a tremendous amount for those who are serious or need to learn. It is really similar to other related topics that are important to people. You should be careful about making too many presumptions until the big picture is a lot more clear. If you are uncertain about what is needed for you, then just take a better look at your specific situation. We will tie everything together plus give you a hint of other necessary information.
Bitcoin is farther away from being The numeraire; not just can it be simply a few, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is exceptional in preserving worth for centuries. Nothing else in reach of humankind has this unique blend of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being cash. Its advantages are also questionable; the intent would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to solve, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; already, a few 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 ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? What this really means is banks realize that they might 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 is not even modest change to the Fiat printers; it’s about 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 practical purpose could they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would 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 then, by the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main issue; why hunt To get a ‘new money’ when 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 of the above. The answer is not in a new sort of money, 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 world of liberty not tyranny. Once this is accomplished, Gold will resume its ancient and vital role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial destruction.
As an engineer and engineer, he Conducted a thriving family business in Canada for years, at its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to discover the cause of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful development of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it is not yet known whether it’s good or bad for ‘Bitcoin’.