How Bitcoin Works

Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the electronic money. At this time, 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 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 represents if we all agree to that and have confidence in the currency. What is the difference, it’s a matter of confidence right?

Okay so, let us say that the authorities, FBI, or another branch of government interferes and documents charges – if they file criminal charges that someone defrauded someone else then just how much defrauding was demanded? If the government law and justice department place a dollar amount number to that, they’re inadvertently agreeing that the electronic money is actual, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud which may or may not have occurred sets the whole concept back a ways, and the media 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 the other way or deny that this trend no more. Could it be time for regulations. Well, I personally despise regulation, but is not this how it usually starts. Once it’s regulated credibility is given to the notion, but his electronic money concept could also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the global market handle that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either make or break this new change in how we see monetary value, wealth, online transactions and how the real world will mind-meld to our prospective blurred reality. I simply don’t see many folks believing here, but everybody needs to, one 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 effects of crypto genius erfahrungen, not only on you but a lot of others, is a fact that has to be recognized. At times there is simply way too much to even attempt to cover in one go, and that is important for you to recognize and take home. There is a lot, we know, and that is why we are taking a very short break to state a few words about this. This is the type of content that people need to know about, and we have no problems saying that. As usual, we typically save the very best for last.

Bitcoin is farther away from being The numeraire; not only is it simply a few, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, 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 unique in being quantified by a real, unchanging physical quantity. Gold is unique in storing value for thousands of years. Nothing else in reach of humankind 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 money. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.

Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true value of the Bitcoin, no? What 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 isn’t 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 bought up and locked up at the Fed’s ‘wallet’… what useful purpose could they serve?

There would be no Bitcoins left Flow; a perfect corner. If there are no Bitcoins in circulation, how on Earth can they be used as a medium of trade? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat printing 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 into the main dilemma; why search For 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? Each of 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 independence not tyranny. Once this is accomplished, Gold will resume its ancient and vital role as honest 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 resultant Hungarian hyperinflation, thus he has intimate encounter with financial devastation.

As an engineer and engineer, he Ran a successful family business in Canada for years, at its peak using over 100 workers, until economic upheaval ruined the profitability of North American manufacturing. Driven out of business, he decided 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 development of the new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘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 if it’s good or bad to ‘Bitcoin’.


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