What do you say to that? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were ideal? Can they get the last laugh, or is this just an expected evolutionary process of disturbance 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 somebody hacked the system or stole the electronic currency. Right now, digital currency 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 value? 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 a matter of trust right?
Alright so, let us say that the regulators, FBI, or another branch of government interferes and documents charges – if they record criminal charges that somebody defrauded somebody else then how much defrauding was involved? If the government enforcement and justice department place a dollar sum number to that, they are inadvertently agreeing that the electronic currency is real, and it has a value, thus, acknowledging it. When they don’t get involved, then some fraud which might or might not have occurred sets the entire concept back a ways, and the press will continue to push down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually begins. Once it’s regulated credibility is given to the notion, but his digital money theory could also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the global market manage that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new shift in how we see monetary value, wealth, online transactions and the way the real world will mind-meld to our prospective blurred reality. I simply don’t see a lot of folks 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 think on it. We believe the above thoughts and suggestions must be taken into account in any conversation on crypto genius. However is that all there is? Not by a long shot – you actually can expand your knowledge greatly, and we can help you. It is difficult to determine all the various means by which they can serve you. However, we always stress that anyone takes a closer look at the overall big picture as it applies to this subject. So we will give you a few more important points to think about.
Bitcoin is further away from being The numeraire; not just can it be a few, much as Fiat… but its worth is measured in Fiat! Even if 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 unique in being measured by a real, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humanity has this unique combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being cash. Its advantages will also be questionable; the intent is to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of this Bitcoin, no? This actually means is banks realize that they might exchange Fiat for Bitcoins… and to really 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 is roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left in Flow; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be applied 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? 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 through ‘over-printing’…
We come into the main issue; why search To get a ‘new money’ if we already have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All 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 liberty not tyranny. Once this is achieved, Gold will restart its ancient and vital role as fair money… and not a minute before.
Rudy J. Fritsch was born 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’s intimate encounter with financial devastation.
As an engineer and engineer, he Conducted a successful family business in Canada for years, at its peak using over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven from business, he chose to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners following their successful development of this new block is cut in half. Thus, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it is not yet known if it’s good or bad for ‘Bitcoin’.