What do you say to this? 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 expected evolutionary process of disturbance as all of 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 money. At this time, digital currency flies under 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 money have worth? 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 we all agree to that and have confidence in the money. What is the difference, it’s an issue of trust right?
Okay so, let us say that the authorities, FBI, or another branch of government interferes and files charges – should they record criminal charges that somebody defrauded somebody else then just how much defrauding was involved? In the event the government enforcement and justice department put a dollar amount number to this, 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 that might or might not have occurred sets the whole notion back a long way, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for the authorities, regulators, and enforcement people, 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 is not this how it usually starts. Once it’s regulated credibility is given to the concept, but his electronic currency concept could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global market handle that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new shift in how we see monetary value, riches, online transactions and how the real world will mind-meld to our future blurred reality. I just don’t see many people thinking here, but everybody should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and think on it. As you can clearly see, what you will discover about crypto genius australia is some points are far more significant than others. Nevertheless, the bottom line is how you want to use it, and how much of it will impact your situation. Of course there is rather a lot more to be learned. Continue reading to discover even more, and what we will do is include a few more critical topics and recommendations for you to consider.
Some of these tips really are critical to your understanding, and there is even more going beyond what is about to be covered.
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 accepted as a medium of trade, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is unique in storing value for centuries. Nothing else in touch of humanity has this unique blend of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might 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 measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they could trade Fiat to get Bitcoins… and also to really 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’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 could they serve?
There would be no Bitcoins left in Circulation; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth can they be applied as a medium of exchange? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat allegedly loses value through ‘over-printing’…
We come into the main issue; why hunt For a ‘new money’ if we already have the best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The answer is not in a new sort of cash, but in 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 huge independence not tyranny. Once this is accomplished, Gold will resume its early and critical role as fair money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial devastation.
As an engineer and engineer, he Ran a successful family business in Canada for years, in its peak employing over 100 workers, until economic upheaval ruined 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 takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have a lasting impact and it isn’t yet known if it is good or bad to ‘Bitcoin’.