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 just an expected 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 us say somebody hacked the system or stole the digital currency. At this time, digital currency flies beneath the radar since it isn’t recognized even with all of the newest 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 signifies if most of us agree to this and have confidence in the currency. What is the difference, it’s an issue of trust right?
Alright so, let’s say that the regulators, FBI, or another branch of government complies and files charges – should they record criminal charges that someone defrauded somebody else then just how much defrauding was involved? If 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 has a value, consequently, acknowledging it. When they don’t get involved, then any fraud which may or may not have happened sets the entire notion 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, authorities, and enforcement folks, and they cannot look the other way or deny that this trend any longer. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually starts. Once it’s regulated credibility is given to the notion, but his electronic currency concept could also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global 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 view monetary price, riches, online transactions and the way the real world will mind-meld into our future blurred reality. I simply don’t see a lot of people believing here, but everybody should, one misstep and we can all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. These few considerations will make a difference in your knowledge as they relate to crypto genius software. There is a tremendous amount you really should take the time to find out about. However, you will find them to be of great utility in your search for information. However, we always emphasize that anyone takes a closer examination at the general big picture as it relates to this subject. The rest of the document will provide you with a few more essential points to bear in mind.
Bitcoin is farther away from being The numeraire; not just can it be a number, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, 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 unique in being measured by a true, unchanging physical quantity. Gold is exceptional in storing worth for centuries. Nothing else in reach of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to solve, then impossible after 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 Significant step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? This actually means is banks realize that they could exchange Fiat to get 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 small change to the Fiat printers; it is roughly a week’s worth of printing from 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 in Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be used 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? Join 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 have the best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The solution isn’t in a new sort of money, but at a new social structure, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is achieved, Gold will restart its ancient and critical role as honest money… and not a moment 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 consequent Hungarian hyperinflation, so he has intimate experience with financial destruction.
As an engineer and engineer, he Conducted a thriving family business in Canada for decades, at its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American production. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful creation of this new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however it does have an enduring impact and it is not yet known if it’s good or bad to ‘Bitcoin’.