Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the digital currency. At this time, digital money flies beneath the radar as it is not recognized even with all the new 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’s worth what it signifies if we all agree to this and have confidence in the money. What is the difference, it is a matter of trust right?
Alright so, let’s say that the authorities, FBI, or another branch of government interferes and documents charges – if they record criminal charges that somebody defrauded somebody else then just how much defrauding was involved? In the event the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the digital money is actual, 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 notion back a ways, and the press will continue to drive down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look another way or deny this trend no more. Is it time for regulations. Well, I personally despise regulation, but is not this how it usually starts. Once it’s controlled credibility is given to the notion, but his digital currency theory may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the global 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 shift in how we see monetary price, riches, online transactions and the way the actual world will mind-meld to our future blurred reality. I just don’t see a lot of folks thinking here, but everyone should, 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. We are offering you solid pieces of advice here, but do be aware that some are more important to understanding crypto genius software. However, the bottom line is how you want to use it, and how much of it will impact your situation. Yet you do understand there is much more to be discovered about this. Continue reading to discover even more, and what we will do is include a few more important topics and suggestions for you to consider.
Some of these tips really are critical to your understanding, and there is even more going beyond what is about to be covered.
Bitcoin is further away from being The numeraire; not just can it be a few, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is unique in preserving value for centuries. Nothing else in reach of humankind has this unique blend of qualities.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the aim would be to limit the ‘mining’ of Bitcoins to 26,000,000 units; this 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, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate worth of this Bitcoin, no? This actually means is banks recognize that they could exchange 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 isn’t even modest change to the Fiat printers; it is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical 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 could they be used 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? Combine the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat supposedly loses value throughout ‘over-printing’…
We come into the main dilemma; why search To get a ‘new money’ if 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 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 world of liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as fair money… and not a moment 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 consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak using over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven from business, he decided to study economics… to discover the cause of this 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’ out of 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it is not yet known if it’s good or bad to ‘Bitcoin’.