What do you say to this? Ouch. Does this prove that the naysayers calling it a Ponzi Scheme were right? Can they get the last laugh, or is this just an expected 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 someone hacked the system or stole the digital currency. Right now, digital money flies beneath the radar since it is not recognized even with all of 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 is not, but it’s worth what it signifies if we all agree to that and have confidence in the money. What’s the difference, it’s a matter of confidence right?
Okay so, let’s say that the regulators, FBI, or another branch of government complies and documents charges – if they record criminal charges that somebody defrauded somebody else then how much defrauding was involved? In the event the government law and justice department place a dollar sum number to this, they’re inadvertently agreeing that the electronic currency is real, and it has a value, consequently, acknowledging it. When they don’t get involved, then any fraud that might or might not have occurred sets the whole notion back a ways, and the press will continue to drive down the confidence of all electronic or crypto-currencies.
So, it’s a catch-22 for the government, regulators, and enforcement folks, 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’s regulated credibility is given to the concept, but his electronic currency theory may also undermine the whole One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global economy handle that level of disturbance? Stay tuned, I guess we shall see.
In the meantime, what happens next will either break or make this new change in how we view monetary price, riches, online transactions and how the actual world will mind-meld into our future blurred reality. I simply don’t see a lot of folks believing here, but everybody needs to, 1 misstep and we could all be in a world of hurt – all of humanity that is. Please think about all of this and think on it. The relative impact of crypto genius erfahrungen on your situation can be remarkable and cause issues of all varieties. There are so many scenarios and variations – twists and turns, that hopefully you see how difficult it can be to include all bases. That is really a good deal when you think about it, so just the briefest moment to mention something. In light of all that is available, and there is a lot, then this is a perfect time to be reading this. Our final few items can really prove to be highly effective considering the overall.
Bitcoin is farther away from being The numeraire; not just can it be a number, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of trade, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can not have an intrinsic measure like Gold has. Gold is unique in being measured by a real, unchanging physical quantity. Gold is unique in storing worth for centuries. Nothing else in reach of humanity has this exceptional combination of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being money. Its advantages will also be questionable; the intent is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is , the ‘mining’ algorithm gets harder and harder to fix, then hopeless following the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins may become a ‘reservable’ currency.
Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? This actually means is banks realize that they might trade Fiat to get 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 roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left in Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth can 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 boost the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value through ‘over-printing’…
We come into the main dilemma; why hunt For a ‘new money’ if 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 solution is not in a new form of cash, but at a new social arrangement, 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 during 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 engineer, he Ran a successful family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven from business, he decided to study economics… to discover the origin of the 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. 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 impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.