What do you say to this? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is that just an expected evolutionary process of disruption as all the kinks are worked out? Well, consider this thought experiment I’d.
Let us say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic money. At this time, digital money flies under the radar as it is not recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have worth? Difficult to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it is worth what it represents if we all agree to that and have trust in the currency. What’s the difference, it’s an issue of trust right?
Alright so, let us say that the regulators, FBI, or another branch of government interferes and documents charges – if they file criminal charges that someone defrauded somebody else then just how much defrauding was involved? In the event the government law and justice department place a dollar amount number to this, they’re inadvertently agreeing that the electronic currency is real, and it has a value, thus, acknowledging it. If they don’t get involved, then some fraud that may or may not have happened sets the whole notion back a ways, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it is a catch-22 for your authorities, authorities, and enforcement folks, and they cannot look another way or deny this trend any longer. Is it 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 concept, but his digital money concept could also undermine the whole One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for this as well. Can the global economy manage that level of disruption? Stay tuned, I guess we shall 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 how the actual world will mind-meld into our prospective blurred reality. I just don’t see many people thinking 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. Now that you have read through this far, has that stirred your views in any way? There is a great deal within the body of knowledge surrounding crypto genius. It is really similar to other related topics that are important to people. Continue reading through and you will see what we mean about important nuances you need to know about. It is always a good idea to determine what your circumstances call for, and then go from that point. You have a solid base of a few important points, and we will make that much more powerful for you as follows.
Bitcoin is further away from being The numeraire; not only is it a number, much as Fiat… but its value is quantified 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 not have an intrinsic measure like Gold has. Gold is unique in being quantified by a real, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in reach of humanity has this unique combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages are also questionable; the intent would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate worth of the Bitcoin, no? What this actually means is banks recognize that they might trade Fiat to get Bitcoins… and to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest change to the Fiat printers; it’s roughly 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 in Circulation; an ideal corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what could 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? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would start to eliminate value, as Fiat supposedly loses value through ‘over-printing’…
We come into the main issue; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The solution is not in a new sort of money, but at a new social arrangement, 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 resume its early and vital role as fair money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he has intimate experience with financial devastation.
As an engineer and engineer, he Conducted a thriving family business in Canada for decades, at its peak using over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven out of business, he decided to study economics… to discover the cause of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Therefore, 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 effect and it is not yet known whether it is good or bad to ‘Bitcoin’.