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 this just an expected evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let us say someone hacked the system or stole the electronic money. At this time, digital currency flies beneath the radar as it is not recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital money have value? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it’s worth what it signifies if we all agree to that and have confidence in the money. What’s the difference, it’s a matter of trust right?
Alright so, let us say that the regulators, FBI, or another branch of government complies and documents charges – should they file criminal charges that someone defrauded someone else then how much defrauding was demanded? In the event the government enforcement and justice department place a dollar sum number to that, they are inadvertently agreeing that the digital currency is actual, and it has a value, thus, acknowledging it. If they don’t get involved, then some fraud that might or might not have happened sets the entire concept back a long way, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for the authorities, regulators, 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 is controlled credibility is given to the concept, but his electronic currency theory may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global economy handle that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we see monetary price, wealth, online transactions and the way the actual world will mind-meld to our future blurred reality. I simply don’t see many people thinking here, but everyone needs to, one misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and consider it. Compelling stuff, we think – what are your impressions? crypto genius software is a massive area with many more sub-topics you can read about. It is really comparable to other related topics that are important to people.
You won’t ever really know about any one element because there are a lot of diverse situations. Do you know precisely the kind of information that will help? If not, then you should discover more about this. We will tie all together plus give you a hint of other important information.
Bitcoin is farther away from being The numeraire; not just can it be simply a number, much as Fiat… but its worth is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving worth for thousands of years. Nothing else in reach of humanity has this unique blend of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the true value of the Bitcoin, no? This actually means is banks realize that they might trade Fiat for Bitcoins… and to really buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not 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 Circulation; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth could they be applied 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 to… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution isn’t in a new sort of money, 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 world of liberty not tyranny. Once this is accomplished, Gold will resume its early and critical role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he has intimate encounter with financial devastation.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, in 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 this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have a lasting impact and it isn’t yet known if it is good or bad for ‘Bitcoin’.