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 that only an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I had.
Let us say there was hanky-panky involved, let’s say somebody hacked the system or stole the electronic currency. Right now, digital currency flies beneath the radar as it isn’t recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital money have value? Hard to say, how can a fancily printed piece of paper marked $20 be worth anything, it’s not, but it is worth what it signifies if most of us agree to that and have trust in the money. What is 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 files charges – if they file criminal charges that somebody defrauded somebody else then just how much defrauding was involved? If the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the electronic money is real, and it’s a value, consequently, acknowledging it. When they don’t get involved, then some fraud that may or may not have occurred sets the whole concept back a long way, and the media will continue to drive down the trust 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 this trend no more. Could it be 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 concept, but his digital currency concept may also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, also there could be hell to pay for that as well. Can the global economy 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 value, riches, online transactions and how the real world will mind-meld into our prospective blurred reality. I just don’t see a lot of people thinking here, but everybody 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. What have just talked about is crucial for your knowledge about crypto genius australia, but there is much more to think about. But there is so much more that you would do well to learn. We believe they are terrific and will aid you in your pursuit for solutions. It really should not need to be said that you must conduct closer examination of all pertinent points. We are not done, and there are just a couple of very strong recommendations and tips for you.
Bitcoin is further away from being The numeraire; not just can it be simply a few, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the accepted ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being quantified by a true, unchanging physical quantity. Gold is unique in storing worth for thousands of years. Nothing else in touch of humankind has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own promise to being money. Its advantages will also be questionable; the aim would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement could very 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 Significant measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate value of this Bitcoin, no? This really means is banks recognize that they could trade Fiat for 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 is about a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what practical purpose could they serve?
There would be no Bitcoins left Circulation; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of exchange? 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 supposedly loses value through ‘over-printing’…
We come to the main dilemma; why hunt For a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution is not in a new form of cash, 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 huge liberty 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 consequent Hungarian hyperinflation, thus he has intimate experience with financial devastation.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak using over 100 workers, until economical upheaval ruined the sustainability of North American manufacturing. Driven from business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners after 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 a lasting effect and it isn’t yet known whether it’s good or bad to ‘Bitcoin’.