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 that 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 currency. Right now, digital currency 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 currency 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 represents if we all agree to this and have trust in the currency. What’s the difference, it’s an issue of confidence right?
Alright so, let us say that the authorities, FBI, or another branch of government interferes and files charges – if they record criminal charges that someone defrauded someone else then just how much defrauding was involved? In the event the government enforcement and justice department place a dollar amount number to that, they are inadvertently agreeing that the digital money is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud that may or may not have happened sets the entire concept back a long way, and the media will continue to push down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for your authorities, authorities, and enforcement folks, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it’s controlled credibility is given to the concept, but his electronic money concept could also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international market handle that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new change in how we see monetary price, riches, online transactions and the way the real world will mind-meld into our future blurred reality. I just don’t see a lot of folks thinking here, but everybody should, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all of this and think on it. All right, we have reviewed the first couple of points concerning crypto genius australia, of course you recognize they play a significant role. They are by no means all there is to learn as you will quickly discover. Nonetheless, you will discover them to be of great utility in your research for information. It really should not need to be said that you must perform closer examination of all relevant points. We are not finished, and there are just a couple of very strong recommendations and tips for you.
Bitcoin is farther away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in storing worth for thousands of years. Nothing else in reach of humankind has this exceptional combination of qualities.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being money. 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 makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate value of the Bitcoin, no? What this actually means is banks realize that they could 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 from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase 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 supposedly loses value throughout ‘over-printing’…
We come into the main issue; why hunt For a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The solution isn’t in a new form of cash, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of liberty 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 encounter with financial devastation.
As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, at its peak using over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven out of business, he decided to study economics… to detect the origin of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners following their successful creation of the new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it isn’t yet known if it’s good or bad to ‘Bitcoin’.