What do you say to this? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is this only an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the electronic money. Right now, digital money flies beneath the radar since 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’s not, but it’s worth what it represents if we all agree to this and have trust in the money. What’s the difference, it’s an issue of trust right?
Okay so, let’s say that the regulators, FBI, or another branch of government complies and documents charges – should they file criminal charges that someone defrauded someone else then how much defrauding was involved? In the event the government law and justice department put a dollar sum number to this, they are inadvertently agreeing that the digital money is real, and it has a value, consequently, acknowledging it. If they don’t get involved, then any fraud that might or might not have occurred sets the entire notion back a ways, and the media will continue to push down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for the government, authorities, and enforcement folks, and they cannot look the other way or deny that this trend any longer. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it is controlled credibility is given to the concept, but his digital money concept may also undermine the whole 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 disruption? 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, wealth, online transactions and how the actual world will mind-meld to our future blurred reality. I just don’t see a lot of people believing here, but everyone needs to, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please consider all this and consider it. There just is no denying about the ability of crypto genius australia to dramatically alter some situations is incredible. We do understand very well that your situation is vital and matters a great deal. So we feel this is just an ideal time to take a break and examine what has just been covered. In light of all that is offered, and there is a lot, then this is a great time to be reading this. Our last few items can really prove to be highly effective considering the overall.
Bitcoin is farther away from being The numeraire; not just is it a few, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is exceptional in preserving value for centuries. Nothing else in reach of humanity has this exceptional combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then hopeless following 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 major measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the legitimate value of this Bitcoin, no? This actually means is banks recognize that they could exchange Fiat for Bitcoins… and also to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it is 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 practical purpose would they serve?
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be used as a medium of trade? And, what could the issuers of Bitcoin potentially 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 , by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key dilemma; why hunt To get a ‘new money’ if we have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer isn’t in a new form of money, but in a new social arrangement, one without Fiat, with no 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 restart its early and critical role as fair 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 resultant Hungarian hyperinflation, so he has intimate encounter with financial devastation.
As an engineer and engineer, he Ran a thriving family business in Canada for decades, at its peak using over 100 workers, until economical upheaval destroyed the profitability of North American production. Driven from business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ awarded to miners after their successful creation of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have an enduring effect and it isn’t yet known whether it is good or bad to ‘Bitcoin’.