As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak using over 100 workers, until economic upheaval destroyed the sustainability of North American manufacturing. Driven out of business, he chose to study economics… to discover the origin of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of this new block is cut in half. Thus, this phenomenon will cut the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting impact and it is not yet known whether it is good or bad for ‘Bitcoin’.
Alright so, let us say that the regulators, FBI, or another branch of government interferes and documents charges – should they file criminal charges that someone defrauded somebody else then just how much defrauding was involved? In the event the government enforcement and justice department put a dollar sum number to that, they are inadvertently agreeing that the electronic currency is actual, and it has a value, consequently, acknowledging it. When they don’t get involved, then some fraud that might or might not have occurred sets the whole concept back a long way, and the press will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for the authorities, 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 hate regulation, but isn’t this how it usually starts. Once it’s regulated credibility is given to the concept, but his digital currency theory may also undermine the whole One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, also there might be hell to pay for this as well. Can the international economy manage that degree of disturbance? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new change in how we view monetary value, riches, online transactions and the way the real world will mind-meld into our future blurred reality. I just don’t see many folks thinking here, but everybody needs to, one misstep and we could all be in a world of hurt – all of humankind that is. Please consider all of this and consider it. There just is no denying about the ability of crypto genius erfahrungen to dramatically alter some circumstances is incredible. There are so many scenarios and variations – twists and turns, that maybe you see how difficult it can be to cover all bases. We will commence the rest of our discussion right away, but sometimes you have to stop and let things sink in a little bit. After all we have read, this is appropriate and powerful information that should be regarded. If you proceed, we know you will not be unhappy with what we have to offer in this article.
Bitcoin is further away from being The numeraire; not just is it simply a few, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is exceptional in storing value for thousands of years. Nothing else in reach of humanity has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being cash. Its advantages will also be questionable; the intent would be to restrict the ‘mining’ of Bitcoins to 26,000,000 units; that is the ‘mining’ algorithm makes harder and harder to solve, 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 announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the true value of the Bitcoin, no? This actually means is banks recognize that they could exchange Fiat to get 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’s 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 could they serve?
There would be no Bitcoins left Flow; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth can they be used as a medium of trade? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But , by the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main dilemma; why search To get a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each the above. The answer is not in a new sort of cash, 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 world of independence not tyranny. Once this is accomplished, Gold will restart its early and vital role as fair money… and not a minute before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, so he’s intimate experience with financial destruction.