Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic currency. Right now, digital currency flies under the radar since it isn’t recognized even with all the new Too Big To Fail regulations on banks, etc.. How can a digital money have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it is worth what it represents if most of us agree to that and have trust in the currency. What’s the difference, it is a matter of trust right?
Okay so, let us say that the authorities, FBI, or another branch of government complies and documents 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 this, they’re inadvertently agreeing that the electronic money is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud which might or might not have happened sets the entire concept back a long way, and the media will continue to drive down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for the government, regulators, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually starts. Once it is controlled credibility is given to the notion, but his electronic currency theory may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global market handle that degree of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new shift in how we view monetary value, wealth, online transactions and how the actual world will mind-meld into our prospective blurred reality. I just don’t see a lot of people thinking here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and consider it. We want to say a fast word about our discussion re crypto genius erfahrungen. However, one really vital distinction here directly relates to your own goals. Even though it is important to every person concerned, there are important variables you should keep in mind. You realize that you are ultimately the one who knows which will have the highest impact. We will now move forward and talk more about a few points in detail.
Bitcoin is farther away from being The numeraire; not only can it be simply a few, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humanity has this exceptional combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages will also be questionable; the intent would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some 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 ‘big banks’ seem to be accepting the legitimate value of the Bitcoin, no? What this really means is banks recognize that they might trade Fiat for Bitcoins… and also to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it is 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 could they serve?
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to lose value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the key dilemma; why hunt 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 laws? Each of the above. The solution is not 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 liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as honest money… and not a moment 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, thus he’s intimate experience with financial devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for years, in its peak using over 100 workers, until economic upheaval destroyed the sustainability of North American production. Driven from business, he decided to study economics… to discover the cause of this unhappy circumstance.
The halving occurs 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’ from 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it isn’t yet known if it’s good or bad for ‘Bitcoin’.