What do you say to this? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Do they get the last laugh, or is this only an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I’d.
Let us say there was hanky-panky involved, let’s say someone hacked the system or stole the electronic currency. At this time, digital money flies under the radar since it is not recognized even with all the new 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 this and have trust in the money. What is the difference, it’s an issue of trust right?
Okay so, let’s 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? In the event the government law and justice department place a dollar sum number to that, they’re inadvertently agreeing that the digital money is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud that may or may not have occurred sets the entire notion back a ways, and the media will continue to push down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for your authorities, regulators, and enforcement people, and they cannot look another way or deny that this trend no more. Could it be time for regulations. Well, I personally despise regulation, but isn’t this how it usually starts. Once it’s regulated credibility is given to the notion, but his electronic currency concept could also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international market handle that degree of disruption? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new shift in how we view monetary price, wealth, online transactions and the way the actual world will mind-meld to our prospective blurred reality. I just don’t see many folks thinking here, but everyone should, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and consider it. The above really only just starts to scratch the surface of what is available concerning crypto genius software. As always, though, much of what you determine you need is totally dependent on what you want to accomplish. There are always some things that will have more of an influence than others. Specifically how they effect what you do is one thing you need to carefully consider. Here are several more equally important highlights on this important topic.
Bitcoin is farther away from being The numeraire; not only can it be a few, much as Fiat… but its value is measured in Fiat! Even if 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 have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a true, unchanging physical quantity. Gold is unique in storing value for thousands of years. Nothing else in touch of humankind has this exceptional combination of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. Its advantages are also questionable; the aim would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to solve, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; currently, some 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’ seem to be accepting the legitimate worth of this Bitcoin, no? 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 is not 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 could they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of trade? And, what could the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat print parade? But then, by the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The answer is not in a new sort of money, but at 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 world of liberty not tyranny. Once this is accomplished, Gold will resume its early and critical role as fair money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he has intimate experience with financial devastation.
As an engineer and engineer, he Conducted a thriving family business in Canada for years, at its peak employing over 100 workers, until economical upheaval destroyed the sustainability of North American manufacturing. Driven from business, he chose to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however , it does have an enduring impact and it is not yet known whether it is good or bad for ‘Bitcoin’.