As an engineer and engineer, he Ran a successful family business in Canada for years, at its peak employing over 100 workers, until economical upheaval ruined the profitability of North American production. Driven out of business, he decided to study economics… to discover the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of the 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 effect and it isn’t yet known if it’s good or bad for ‘Bitcoin’.
Okay so, let us say that the regulators, FBI, or another branch of government interferes and files charges – if they record criminal charges that someone defrauded somebody else then just how much defrauding was demanded? If the government enforcement and justice department put a dollar sum number to that, they are inadvertently agreeing that the digital currency 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 happened sets the whole concept back a ways, and the media will continue to drive down the trust of all digital or crypto-currencies.
So, it is a catch-22 for your government, regulators, and enforcement people, and they cannot look the other way or deny 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 digital currency concept could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for that as well. Can the international market handle that degree 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 price, wealth, online transactions and the way the actual world will mind-meld to our future blurred reality. I just don’t see many people believing here, but everyone needs to, one misstep and we could all be in a world of hurt – all of humankind that is. Please consider all this and consider it. We are providing you solid pieces of advice here, but do be aware that some are more important to understanding crypto genius australia. What is more critical for you may be much less so for others, so you have to think about your unique conditions. Of course there is quite a lot more to be learned. The balance of this read holds much more that will help your particular situation. What you are about to read will significantly enhance your knowledge, and we will go even past that point, too.
Bitcoin is further away from being The numeraire; not only can it be simply a few, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in touch of humankind has this unique blend of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the aim is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; currently, a few 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 legitimate worth of this Bitcoin, no? This actually means is banks recognize that they might 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 is not even small 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 at the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left in Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth can they be applied as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? 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, as Fiat supposedly loses value through ‘over-printing’…
We come into the main dilemma; why hunt To get a ‘new money’ when we have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The solution is not in a new form of cash, 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 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, thus he’s intimate experience with financial devastation.