Let’s say there was hanky-panky involved, let us say someone 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 new 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 we all agree to that and have trust in the money. What is the difference, it is a matter of trust right?
Okay so, let us say that the authorities, FBI, or another branch of government complies and documents charges – if they record 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 sum number to this, they are inadvertently agreeing that the electronic money is actual, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud that may or may not have happened sets the whole notion back a long way, and the media will continue to drive down the confidence of all digital or crypto-currencies.
So, it’s a catch-22 for your authorities, authorities, and enforcement folks, and they cannot look another way or deny this trend no more. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it is regulated credibility is given to the concept, but his electronic money theory could also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the global market manage that level of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and the way the real world will mind-meld to our future blurred reality. I simply don’t see a lot of people believing here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. All right, we have reviewed the first couple of points regarding crypto genius software, of course you realize they play an important role. There is a remarkable amount you truly should take the time to know about. We believe they are terrific and will aid you in your quest for solutions. Do take the time and make the effort to discover the big picture of this. So we will provide you with a few more important ideas to think about.
Bitcoin is further away from being The numeraire; not just can it be simply a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted 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 unique in preserving value for thousands of years. Nothing else in touch of humanity has this unique blend of qualities.
In conclusion, 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 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 impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins might 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 true value of the Bitcoin, no? What this really means is banks recognize that they might trade 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 modest change to the Fiat printers; it’s about a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased 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 aren’t any Bitcoins in flow, how on Earth could they be used as a medium of trade? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would start to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main dilemma; why hunt To get a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? All the above. The answer isn’t in a new form of cash, but in 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 huge liberty 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, and 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 destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven from 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 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 effect and it isn’t yet known if it’s good or bad to ‘Bitcoin’.