What’s A Cryptocurrency And Bitcoin?

What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were ideal? Do they get the last laugh, or is that just an expected 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 us say someone hacked the system or stole the electronic money. Right now, digital money flies beneath the radar since it isn’t recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it is not, but it’s worth what it signifies if most of us agree to that and have confidence in the currency. What is the difference, it is a matter of trust right?

Alright so, let’s say that the regulators, FBI, or another branch of government complies and files charges – should they file criminal charges that somebody defrauded somebody else then how much defrauding was involved? In the event the government enforcement and justice department put a dollar amount number to that, they’re inadvertently agreeing that the digital currency is real, and it’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud which might or might not have happened sets the whole notion back a ways, and the press will continue to drive down the confidence of all digital or crypto-currencies.

So, it is a catch-22 for your government, regulators, and enforcement people, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally despise regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his digital currency theory may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global economy handle that degree of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new shift in how we see monetary price, riches, online transactions and how the real world will mind-meld to our future blurred reality. I just don’t see a lot of folks believing here, but everybody needs to, 1 misstep and we can all be in a world of hurt – all of humanity that is. Please think about all of this and consider it. The relative effect of crypto genius software on your situation can be dramatic and cause issues of all varieties. It can be difficult to cover all possible scenarios simply because there is so much involved. There is a lot, we know, and that is why we are taking a very short break to state a few words about this. In light of all that is available, and there is a lot, then this is a perfect time to be reading this. As usual, we generally save the very best for last.

Bitcoin is further away from being The numeraire; not just is it simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in touch of humankind has this exceptional combination of qualities.

In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages are also questionable; the aim is to restrict the ‘mining’ of Bitcoins into 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 might well be the death knell of Bitcoin; currently, some 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 ‘big banks’ appear to be accepting the legitimate value of the Bitcoin, no? This really means is banks recognize that they could trade Fiat to get 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 small 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 practical purpose would they serve?

There would be no Bitcoins left in Flow; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be applied as a medium of trade? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to eliminate value, as Fiat supposedly loses value throughout ‘over-printing’…

We come to the main issue; why search To get a ‘new money’ when we already have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? Each the above. The answer isn’t in a new form of money, 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 world of liberty not tyranny. Once this is accomplished, Gold will restart its ancient and vital role as honest money… and not a minute 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 devastation.

As an engineer and engineer, he Conducted a thriving family business in Canada for decades, in its peak using over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.

The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of this new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ from 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’s good or bad to ‘Bitcoin’.

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