Let us say there was hanky-panky involved, let us say someone hacked the system or stole the digital money. At this time, digital money flies beneath the radar since it isn’t recognized even with all of the newest Too Big To Fail regulations on banks, etc.. How can a digital currency have value? 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 represents if we all agree to that and have trust in the money. What’s the difference, it’s a matter of trust right?
Alright so, let us say that the authorities, FBI, or another branch of government complies and files charges – should they record criminal charges that someone defrauded somebody else then how much defrauding was involved? If the government enforcement and justice department place a dollar amount number to this, they are inadvertently agreeing that the digital currency is actual, and it has a value, thus, acknowledging it. When they don’t get involved, then any fraud that may or may not have occurred sets the entire concept back a long way, and the press will continue to drive down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for the government, authorities, and enforcement people, 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 notion, but his electronic money theory may also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for this as well. Can the international market handle 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 see monetary price, riches, online transactions and the way the actual world will mind-meld into our prospective blurred reality. I just don’t see many people thinking here, but everyone needs to, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please think about all this and consider it. We believe the above thoughts and tips must be taken into account in any conversation on crypto genius australia. However is that all there is? Not by a long shot – you really can expand your knowledge greatly, and we can help you. We know they are terrific and will aid you in your pursuit for solutions. However, we always emphasize that anyone takes a closer examination at the overall big picture as it relates to this subject. The rest of the document will provide you with a few more important factors to bear in mind.
Bitcoin is farther away from being The numeraire; not only can it be simply a number, 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 approved ‘numeraire’, it can not possess 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 centuries. Nothing else in reach of humanity has this exceptional blend of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim 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 makes harder and harder to solve, then impossible after 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 Significant 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 realize that they might exchange Fiat for Bitcoins… and also to actually 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 is about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come into the key issue; why search For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer is not in a new sort of cash, but in a new social structure, 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 achieved, Gold will restart its early and critical 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 experience with financial destruction.
As an engineer and engineer, he Conducted a successful family business in Canada for decades, at its peak employing over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners following their successful creation of this new block is cut in half. Therefore, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however , it does have an enduring effect and it is not yet known if it is good or bad for ‘Bitcoin’.