Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. At this time, digital currency flies under the radar since it is not recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? 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 trust in the currency. What’s the difference, it’s a matter of confidence right?
Okay so, let’s say that the regulators, FBI, or another branch of government interferes and files charges – if they file criminal charges that somebody defrauded someone else then how much defrauding was involved? In the event the government enforcement and justice department place a dollar amount number to this, they’re inadvertently agreeing that the electronic money is actual, and it has a value, thus, acknowledging it. If they don’t get involved, then some fraud which might or might not have happened sets the entire notion back a long way, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look another 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 regulated credibility is given to the notion, but his electronic currency concept could also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the global economy manage that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we see monetary price, wealth, 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 thinking here, but everyone needs to, one misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and consider it. Now that you have read this far, has that stirred your views in any way? No question, we are just getting started with all that can be acknowledged about crypto genius software. A lot of men and women have found certain other areas are beneficial and contribute good information. Continue reading through and you will see what we mean about important nuances you need to know about. It is always a wise decision to determine what your circumstances call for, and then go from that point. The rest of our talk will add more to what we have said so far.
Bitcoin is further away from being The numeraire; not only can it be simply a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in touch of humankind has this exceptional combination of qualities.
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 aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, 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 true worth of the Bitcoin, no? What this really means is banks realize that they might exchange Fiat for Bitcoins… and also to really buy up the 26 million Bitcoins projected 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 by the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left Flow; a perfect corner. If there are no Bitcoins in circulation, how on Earth can they be applied 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? Combine the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the main dilemma; why hunt For a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The solution isn’t in a new sort of money, but at a new social arrangement, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is achieved, Gold will resume its early and vital role as fair money… and not a minute 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’s intimate experience with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for decades, in its peak employing over 100 workers, until economic upheaval ruined the profitability of North American production. Driven out of business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful creation of this new block is cut in half. Therefore, this phenomenon will cut the awarded ‘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 if it is good or bad for ‘Bitcoin’.