Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the digital money. Right now, digital currency flies beneath the radar as it isn’t recognized even with all the new Too Big To Fail regulations on banks, etc.. How can a digital currency have value? 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 signifies if we all agree to this and have trust in the money. What is the difference, it is an issue of trust right?
Okay so, let us say that the regulators, FBI, or another branch of government interferes and files charges – if they record criminal charges that someone defrauded somebody else then how much defrauding was involved? If the government law and justice department place a dollar sum number to that, they’re inadvertently agreeing that the electronic money is real, and it has a value, thus, acknowledging it. When they don’t get involved, then some fraud that may or may not have happened sets the entire notion back a ways, and the media will continue to drive down the trust of all electronic or crypto-currencies.
So, it’s a catch-22 for the government, authorities, and enforcement folks, and they cannot look the other way or deny this trend no more. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his electronic currency concept 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 this as well. Can the global market handle that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new change in how we view monetary value, riches, online transactions and the way the real world will mind-meld into our prospective blurred reality. I simply don’t see a lot of folks believing here, but everybody should, 1 misstep and we can all be in a world of hurt – all of humankind that is. Please consider all of this and think on it. What have just discussed is crucial for your understanding about crypto genius software, but there is a lot more to think about. But is that all there is? Not by a long shot – you really can expand your knowledge greatly, and we will help you. We feel you will find them to be very helpful in a lot of ways. However, we always stress that anyone takes a closer look at the general big picture as it applies to this subject. The rest of the document will provide you with a few more important points to bear in mind.
Bitcoin is further away from being The numeraire; not just is it simply a number, much as Fiat… but its value is quantified 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 exceptional in being measured by a true, unchanging physical quantity. Gold is exceptional in storing value for thousands of years. Nothing else in reach of humanity has this unique combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own claim to being money. Its advantages are also questionable; the aim is to limit the ‘mining’ of Bitcoins to 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, some central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of this Bitcoin, no? What this really means is banks recognize that they might exchange Fiat to get Bitcoins… and also to really buy up the 26 million Bitcoins planned 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 by the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of trade? And, what could the issuers of Bitcoin potentially do to defend against such a destiny? Change the algorithm and increase the 26 million into… 52 million? To 104 million? Combine the Fiat print parade? But , by the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value through ‘over-printing’…
We come into the key dilemma; why hunt For a ‘new money’ if 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? Each of the above. The answer is not in a new form of money, 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 liberty not tyranny. Once this is achieved, Gold will resume its early and critical 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’s intimate encounter with financial devastation.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for years, at its peak using over 100 workers, until economic upheaval ruined the sustainability of North American manufacturing. Driven from business, he decided to study economics… to discover the cause of this unhappy circumstance.
The halving occurs when the Number of ‘Bitcoins’ given to miners after their successful creation of the new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ out of 25 coins to 12.5. It’s not a new thing, however , it does have a lasting effect and it isn’t yet known if it is good or bad for ‘Bitcoin’.