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 that only an anticipated evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I’d.
Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the electronic money. At this time, digital money flies under the radar since it is not recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Hard 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 most of us agree to that and have trust in the currency. What is 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 – should they file criminal charges that somebody defrauded someone else then how much defrauding was demanded? If the government law and justice department put a dollar amount number to that, 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 that might or might not have occurred sets the whole concept back a ways, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your authorities, authorities, and enforcement people, and they cannot look the other 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 starts. Once it’s regulated credibility is given to the concept, but his electronic money theory could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the international economy manage that level of disruption? Stay tuned, I guess we will 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 actual world will mind-meld to our prospective blurred reality. I simply don’t see many folks believing here, but everybody should, one misstep and we could all be in a world of hurt – all of humankind that is. Please consider all this and consider it. Now that you have read this far, has that stirred your views in any way? There is a great deal within the body of knowledge surrounding crypto genius software. Yes, it is true that so many find this and other similar subjects to be of fantastic value. A lot of things can have an impact, and you should widen your scope of knowledge. Do you know exactly the kind of info that will help? If not, then you should discover more about this.
The concluding discussion will solidify what we have revealed to you up to this point.
Bitcoin is further away from being The numeraire; not only is it a few, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing value for thousands of years. Nothing else in touch of humanity has this exceptional combination of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. 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 solve, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, a few 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’ seem to be accepting the true worth of the Bitcoin, no? This actually means is banks realize that they might trade Fiat for Bitcoins… and 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 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 Flow; a perfect corner. If there aren’t any Bitcoins in flow, how on Earth could they be applied as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main issue; why search For a ‘new money’ when we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new form of cash, but at 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 critical role as fair money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny throughout 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 engineer, he Conducted a thriving family business in Canada for decades, in its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven from business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful creation of the new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however , it does have a lasting effect and it isn’t yet known if it is good or bad for ‘Bitcoin’.