Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the electronic money. Right now, digital money flies under the radar since it is not recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital currency 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’s an issue of trust right?
Okay so, let us 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 how much defrauding was demanded? In the event the government enforcement and justice department put a dollar amount number to that, they are inadvertently agreeing that the digital currency is real, 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 notion back a ways, and the media will continue to drive down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally despise regulation, but is not this how it usually begins. Once it is controlled credibility is given to the notion, but his digital money concept could also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the international market handle that degree of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we see monetary price, riches, online transactions and how the real world will mind-meld into our future blurred reality. I simply don’t see a lot of people believing here, but everyone should, one misstep and we could all be in a world of hurt – all of humanity that is. Please consider all this and consider it. While this is all appropriate to your discovery, a few items about crypto genius software carry more weight than others. What is more important for you may be much less so for others, so you have to consider your unique conditions. Yet you do understand there is much more to be discovered about this. Keep reading to discover even more, and what we will do is include a few more critical topics and recommendations for you to consider.
Some of these tips really are critical to your comprehending, and there is even more going further than what is about to be covered.
Bitcoin is farther away from being The numeraire; not only can it be a number, much as Fiat… but its worth is quantified 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 never have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is unique in preserving worth 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, specifically anonymity and decentralization, it fails in its promise to being money. Its advantages are also questionable; the intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets 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 announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of this Bitcoin, no? What this really means is banks recognize that they could exchange 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 modest 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 in the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth could they be used as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Combine the Fiat print parade? But then, by the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ when we have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not in a new sort of money, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is accomplished, Gold will resume 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 during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial destruction.
As an engineer and entrepreneur, he Ran a successful 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 detect the origin of the unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ awarded to miners following their successful creation of the new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have a lasting effect and it isn’t yet known whether it’s good or bad for ‘Bitcoin’.