What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is this just an anticipated evolutionary process of disruption as all of the kinks are worked out? Well, consider this thought experiment I had.
Let’s say there was hanky-panky involved, let us say somebody hacked the system or stole the digital currency. At this time, digital currency flies beneath the radar as it is not recognized even with all the newest 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 represents if we all agree to that and have trust in the money. What is the difference, it is an issue of confidence right?
Alright so, let us say that the authorities, FBI, or another branch of government complies and documents charges – if they file criminal charges that somebody defrauded someone else then just how much defrauding was involved? If the government law and justice department place a dollar sum number to this, they are inadvertently agreeing that the electronic currency is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then any fraud which may or may not have occurred sets the whole notion back a long way, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for the authorities, authorities, and enforcement people, and they cannot look another way or deny this trend any longer. Is it time for regulations. Well, I personally hate regulation, but is not this how it usually starts. Once it’s regulated credibility is given to the notion, but his electronic money theory could also undermine the entire One World Currency plan or perhaps 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 change in how we view monetary price, wealth, online transactions and the way the actual world will mind-meld to our future blurred reality. I simply don’t see many people believing here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please consider all this and think on it. We are offering you solid pieces of advice here, but do be aware that some are more important to understanding crypto genius australia.
But that can vary a bit, and it really just depends on how you want to use the information. Yet you do realize there is much more to be found out about this. The last half of the article will offer you more solid info about this. Even following what is next, we will not stop there because the very best is but to come.
Bitcoin is further away from being The numeraire; not just is it simply a few, much as Fiat… but its worth is quantified in Fiat! Even though 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 possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in touch of humankind has this unique combination of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its promise to being cash. Its advantages are also 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 solve, then impossible after 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 major measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate worth of this Bitcoin, no? What this really means is banks realize that they could exchange 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 isn’t even small 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 practical 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 would 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 printing parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key issue; why search To get a ‘new money’ when 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 legislation? All the above. The answer is not in a new form of money, but at a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of independence not tyranny. Once this is accomplished, Gold will restart its early and vital role as fair money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, so he has intimate encounter with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for decades, in its peak employing over 100 workers, until economical upheaval ruined the sustainability of North American production. Driven out of business, he decided to study economics… to detect the origin of the 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 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 isn’t yet known whether it’s good or bad to ‘Bitcoin’.