What do you say to this? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Can they get the last laugh, or is this only an expected evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I’d.
Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic currency. At this time, digital money flies under the radar as it isn’t 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’s not, but it’s worth what it signifies if most of us agree to that and have trust in the currency. What is the difference, it is an issue of confidence right?
Okay so, let’s say that the regulators, FBI, or another branch of government complies and documents charges – should they record criminal charges that somebody defrauded someone else then just how much defrauding was involved? If the government law and justice department place a dollar amount number to that, they’re inadvertently agreeing that the digital currency is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud that might or might not have happened sets the whole notion back a ways, and the press will continue to push down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for your government, authorities, and enforcement folks, and they cannot look another way or deny this trend no more. Could it be time for regulations. Well, I personally despise regulation, but is not this how it usually begins. Once it is regulated credibility is given to the concept, but his electronic money theory may also undermine the entire 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 global market handle that level 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 see monetary value, riches, online transactions and how the actual world will mind-meld into our future blurred reality. I simply don’t see a lot of folks believing here, but everyone needs to, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and think on it. What have just talked about is crucial for your understanding about crypto genius, but there is much more to think about. Of course we strongly recommend you learn more about them. We believe they are terrific and will aid you in your quest for solutions. Getting a high altitude overview will be of immense value to you. But we have saved the best for last, and you will understand what we mean once you have read through.
Bitcoin is farther away from being The numeraire; not just is it a number, much as Fiat… but its worth is measured 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 never possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in reach of humankind has this exceptional blend of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being cash. Its advantages will also be 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 hopeless after 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 Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the true value of the Bitcoin, no? This really means is banks realize that they might exchange Fiat for Bitcoins… and to actually 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 is 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 practical purpose could they serve?
There would be no Bitcoins left Circulation; a perfect corner. If there are no Bitcoins in flow, how on Earth could they be applied as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But , by the quantity theory of money, Bitcoin would start to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main issue; why search To get a ‘new money’ when we 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 of the above. The answer is not 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 accomplished, Gold will resume its ancient and vital role as fair money… and not a moment 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 encounter with financial devastation.
As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, at its peak using over 100 workers, until economic upheaval ruined the profitability of North American production. Driven out of business, he chose to study economics… to detect the origin of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting impact and it is not yet known if it’s good or bad to ‘Bitcoin’.