Let us say there was hanky-panky involved, let’s say somebody hacked the system or stole the digital money. At this time, digital money flies under the radar as it isn’t recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital currency have value? 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 this and have trust in the currency. What’s the difference, it is an issue of confidence right?
Alright so, let’s say that the authorities, FBI, or another branch of government complies and files charges – should they file criminal charges that somebody defrauded someone else then just how much defrauding was involved? In the event 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’s a value, thus, acknowledging it. When they don’t get involved, then some fraud that might or might not have happened sets the entire notion back a long way, and the media will continue to drive down the trust of all electronic or crypto-currencies.
So, it is a catch-22 for the authorities, authorities, and enforcement folks, and they cannot look another way or deny this trend no more. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually starts. Once it is controlled credibility is given to the concept, but his electronic currency concept could also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the international market manage that degree of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new shift in how we view monetary price, riches, online transactions and how the real world will mind-meld into our future blurred reality. I just don’t see a lot of people believing here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please think about all this and think on it. The effects of crypto genius software, not only on you but a lot of others, is a fact that has to be acknowledged. We do recognize very well that your situation is really important and matters a great deal. But I wanted to stop for a moment so you can reflect on the importance of what you have just read. After all we have read, this is timely and powerful information that should be regarded. The balance of this article is not to be overlooked because it can make a huge difference.
Bitcoin is farther away from being The numeraire; not just is it a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique 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 blend of qualities.
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 intent would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might 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 worth of the Bitcoin, no? What this really means is banks realize that they could trade Fiat to get Bitcoins… and 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 about 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; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of trade? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main issue; why search For a ‘new money’ if we already have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The solution isn’t in a new sort of money, but in a new social structure, one without Fiat, without Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is achieved, Gold will restart its ancient and critical role as honest money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he’s intimate encounter with financial devastation.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, at its peak using over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number 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’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting impact and it is not yet known if it is good or bad to ‘Bitcoin’.