Short History of Bitcoin

What do you say to that? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Can they get the last laugh, or is that just an anticipated evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I’d.

Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic currency. Right now, digital currency flies under the radar as it isn’t 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 is worth what it signifies if most of us agree to that and have trust in the currency. What’s the difference, it’s an issue of confidence right?

Okay so, let’s say that the regulators, FBI, or another branch of government complies and files charges – should they record criminal charges that somebody defrauded someone else then just how much defrauding was demanded? In the event the government enforcement and justice department put a dollar sum number to this, they are inadvertently agreeing that the electronic currency is real, and it’s a value, consequently, acknowledging it. When they don’t get involved, then any fraud that may or may not have happened sets the entire concept back a ways, and the press will continue to push down the confidence of all digital or crypto-currencies.

So, it’s a catch-22 for your government, regulators, and enforcement people, and they cannot look the other way or deny that this trend no more. 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 notion, but his electronic money concept could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the international market handle that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, wealth, online transactions and the way the real world will mind-meld into our future blurred reality. I simply don’t see many folks thinking here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all this and consider it. We are providing you solid pieces of info here, but do be aware that some are more critical to understanding crypto genius software. Nevertheless, the bottom line is how you want to use it, and how much of it will impact your situation. We really are just getting started here, and hopefully you will be thrilled about what more is in store. The final half of the article will offer you a lot more solid info about this. What you are about to read will greatly enhance your knowledge, and we will go even beyond that point, too.

Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can never have 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 reach of humankind has this unique blend of attributes.

In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being cash. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins to 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; currently, a few 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 ‘large banks’ seem to be accepting the true worth of this Bitcoin, no? This really means is banks recognize that they might trade Fiat for Bitcoins… and to actually 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 roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?

There would be no Bitcoins left Flow; a perfect corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of exchange? 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 eliminate value, as Fiat supposedly loses value throughout ‘over-printing’…

We come into the key issue; why search For a ‘new money’ if we already have the very best money, 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 cash, but in 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 independence not tyranny. Once this is achieved, Gold will resume its early and vital role as fair money… and not a moment before.

Rudy J. Fritsch was created in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate encounter with financial destruction.

As an engineer and engineer, he Conducted a successful family business in Canada for years, in its peak using over 100 workers, until economic upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to detect the cause of the unhappy circumstance.

The halving occurs when the Number of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ from 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 is good or bad to ‘Bitcoin’.

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