Let us say there was hanky-panky involved, let us say someone hacked the system or stole the digital currency. Right now, digital money flies under the radar as it is not recognized even with all 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’s worth what it signifies if we all agree to that and have trust in the currency. What is 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 – should they record criminal charges that someone defrauded somebody else then how much defrauding was demanded? In the event the government enforcement and justice department place a dollar sum number to this, they’re inadvertently agreeing that the electronic currency is real, and it’s a value, thus, acknowledging it. When they don’t get involved, then any fraud which may or may not have happened sets the entire notion back a ways, and the press will continue to push down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for your authorities, regulators, and enforcement people, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his electronic currency concept may also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global economy manage that degree of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new change in how we view monetary value, wealth, online transactions and the way the actual world will mind-meld to our future blurred reality. I just don’t see many people thinking here, but everyone needs to, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and think on it. We believe the above thoughts and suggestions must be taken into account in any conversation on crypto genius. There is a tremendous amount you really should take the time to find out about. Nonetheless, you will find them to be of great utility in your research for information. Gaining a high altitude snapshot will be of immense benefit to you. Keep reading because you do not want to miss these crucial knowledge items.
Bitcoin is further away from being The numeraire; not just is it simply a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is exceptional in storing worth for thousands of years. Nothing else in touch of humankind has this exceptional combination 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 intent would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to fix, then hopeless 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 major measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate value of this Bitcoin, no? What this really means is banks realize that they could exchange Fiat to get Bitcoins… and also to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it’s roughly 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 in Circulation; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come into the main dilemma; why hunt For 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 legislation? Each of the above. The answer isn’t in a new sort of cash, but at a new social arrangement, one without Fiat, without 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 achieved, Gold will restart its early and vital role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so 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 decided to study economics… to discover the cause of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners following their successful development 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 an enduring impact and it is not yet known whether it is good or bad to ‘Bitcoin’.