What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is this only an anticipated evolutionary process of disturbance as all of the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the digital currency. At this time, digital money flies beneath the radar since it isn’t recognized even with all of the new 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 is worth what it signifies if we all agree to that and have confidence in the currency. What is the difference, it’s an issue of trust right?
Okay so, let’s say that the authorities, FBI, or another branch of government interferes and files charges – should they record criminal charges that someone defrauded somebody else then how much defrauding was involved? If the government law and justice department put a dollar amount number to that, they are inadvertently agreeing that the electronic money is actual, and it has a value, thus, acknowledging it. When they don’t get involved, then some fraud that might or might not have happened sets the whole concept back a ways, and the press will continue to drive down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for the authorities, authorities, and enforcement people, and they cannot look another way or deny that this trend no more. Could it be 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 notion, but his digital money concept may also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global economy handle that level of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we see monetary price, wealth, online transactions and how the real world will mind-meld into our future blurred reality. I simply don’t see many people thinking here, but everyone should, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please consider all of this and think on it. What have just talked about is crucial for your knowledge about crypto genius software, but there is a lot more to think about. But is that all there is? Not by a long shot – you really can expand your knowledge greatly, and we can help you. We believe they are terrific and will aid you in your pursuit for solutions. Do take the time and make the effort to discover the big picture of this. We are not done, and there are just a couple of very strong suggestions and tips for you.
Bitcoin is further away from being The numeraire; not just can it be simply a few, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in reach of humanity has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. 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 following the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate worth of the Bitcoin, no? This actually means is banks recognize that they might trade Fiat to get Bitcoins… and also 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 is roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased 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 could they be used as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? 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 start to lose value, as Fiat allegedly loses value through ‘over-printing’…
We come to the key dilemma; why search For a ‘new money’ if we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The solution isn’t in a new form of money, but in a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A huge liberty not tyranny. Once this is achieved, Gold will resume its early and vital role as fair 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 encounter with financial destruction.
As an engineer and engineer, he Conducted a successful family business in Canada for years, at its peak using 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 the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of this new block is cut in half. Thus, this phenomenon will reduce the given ‘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 whether it is good or bad to ‘Bitcoin’.