What do you say to that? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Can they get the last laugh, or is that only an expected 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. Right now, digital currency flies under the radar as it isn’t recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital currency have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it’s worth what it signifies if we all agree to this and have confidence in the money. What is the difference, it is a matter of trust right?
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – should they record criminal charges that someone defrauded someone else then how much defrauding was demanded? In the event the government law and justice department place a dollar amount number to that, they are inadvertently agreeing that the digital money is actual, and it has a value, consequently, acknowledging it. When they don’t get involved, then any fraud that may or may not have happened sets the entire concept back a ways, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it is a catch-22 for your government, regulators, and enforcement folks, and they cannot look the other way or deny this trend no more. Could it be time for regulations. Well, I personally despise regulation, but is not this how it usually begins. Once it is controlled credibility is given to the concept, but his electronic currency theory could also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for this as well. Can the international economy handle that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we see monetary value, wealth, online transactions and the way the real world will mind-meld to our prospective blurred reality. I just don’t see a lot of folks thinking here, but everyone should, one misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and consider it. Has what you have found added to your previous knowledge? You may already have guessed that crypto genius software is a vast field with much to discover. You can find there is much in common with topical areas closely resembling this one. Sometimes it can be tough to get a distinct picture until you discover more. It is always a good idea to determine what your circumstances call for, and then go from that point. We will tie all together plus give you a hint of other necessary information.
Bitcoin is further away from being The numeraire; not just can it be a few, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing worth for centuries. Nothing else in touch of humanity has this unique blend of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages will also be questionable; the intent is to limit the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of this Bitcoin, no? What this actually means is banks realize that they might exchange Fiat to get Bitcoins… and to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it’s about 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 Flow; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of exchange? And, what could the issuers of Bitcoin potentially 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 , from the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main dilemma; why search To get a ‘new money’ when we have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The solution isn’t in a new form of money, 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 achieved, Gold will restart its ancient and critical role as fair money… and not a minute before.
Rudy J. Fritsch was created 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, so he’s intimate experience with financial devastation.
As an engineer and engineer, he Conducted a successful family business in Canada for decades, at its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful creation 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 whether it is good or bad to ‘Bitcoin’.