What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is that only an anticipated evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I’d.
Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the digital money. At this time, digital money flies beneath the radar since it is not recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital money 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 represents if we all agree to that and have confidence in the currency. What is the difference, it is a matter 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 just how much defrauding was demanded? In the event the government enforcement and justice department place a dollar sum number to that, they are inadvertently agreeing that the electronic money is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud which might or might not have happened sets the whole notion back a long way, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for your government, regulators, and enforcement folks, and they cannot look the other way or deny that this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is regulated credibility is given to the notion, but his electronic money concept may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for that as well. Can the global market handle that level of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new change in how we view monetary value, riches, online transactions and the way the actual world will mind-meld to our prospective blurred reality. I just don’t see a lot of people thinking here, but everyone should, one misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and think on it. There is so much for you to learn about crypto genius australia, and we certainly can guide you in this area. One thing we tend to believe you will discover is the correct info you need will take its cues from your current predicament. The most innocuous specifics can sometimes hold the most crucial keys as well as the greatest power. The best strategy is to try to imagine the effects each point could have on you. The rest of this article will provide you with a few more very hot tips about this.
Bitcoin is further away from being The numeraire; not only can it be simply a few, much as Fiat… but its value is quantified in Fiat! Even though Bitcoin becomes internationally accepted as a medium of trade, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a true, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in reach of humankind has this exceptional combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be questionable; the aim would be 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 could very well be the death knell of Bitcoin; currently, a few central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the legitimate worth of this Bitcoin, no? This actually means is banks recognize that they might trade Fiat to get Bitcoins… and also 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’s roughly a week’s worth of printing from 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 in Flow; a perfect 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 possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But then, by the quantity theory of money, Bitcoin would start to lose value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key issue; why hunt For a ‘new money’ when we already have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The solution isn’t in a new form of money, but in a new social structure, one without Fiat, with no 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 restart its early and vital role as honest money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, so he has intimate encounter with financial devastation.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, in its peak employing over 100 workers, until economic upheaval destroyed the profitability of North American production. Driven out of business, he decided to study economics… to discover the cause of the unhappy circumstance.
The halving occurs when the Amount 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’s not a new thing, however it does have a lasting impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.