What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were ideal? Can they get the last laugh, or is that only an anticipated evolutionary process of disruption as all the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic money. Right now, digital currency flies under the radar since it isn’t recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have value? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it’s worth what it represents if we all agree to that and have trust in the currency. What is 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 record criminal charges that somebody defrauded somebody else then how much defrauding was involved? If the government law and justice department place a dollar sum number to that, they are inadvertently agreeing that the digital money is actual, and it has a value, thus, acknowledging it. If they don’t get involved, then any fraud which might or might not have happened sets the whole notion back a long way, and the press will continue to push down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for the authorities, regulators, and enforcement folks, and they cannot look another way or deny that this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it’s controlled credibility is given to the notion, but his electronic currency theory could also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for that as well. Can the international economy manage that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and the way the actual world will mind-meld into our prospective blurred reality. I just don’t see many people thinking here, but everybody should, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. Has what you have discovered added to your previous knowledge? You may already have thought that crypto genius erfahrungen is a vast field with much to find out. A lot of men and women have found certain other areas are beneficial and contribute excellent information. A lot of things can have an impact, and you should expand your scope of knowledge. Try evaluating your own unique requirements which will help you even more refine what may be necessary. The rest of our talk will add more to what we have said so far.
Bitcoin is further away from being The numeraire; not just can it be a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of trade, and even though 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 measured by a true, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in reach 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 promise to being cash. Its advantages will also be questionable; the aim would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true worth of the Bitcoin, no? This really means is banks recognize that they might exchange Fiat to get Bitcoins… and also to really 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’s roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left Flow; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth can they be used 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? Combine the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main issue; why hunt To get a ‘new money’ when we already have the best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The solution is not in a new form of cash, 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 early and critical 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, so he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a successful family business in Canada for years, at its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he chose to study economics… to discover the cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners after their successful creation of this 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 a lasting effect and it is not yet known whether it’s good or bad to ‘Bitcoin’.