Let’s say there was hanky-panky involved, let’s say somebody hacked the system or stole the digital currency. Right now, digital currency flies beneath the radar since it is not recognized even with all the newest Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Difficult 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 that and have trust in the currency. What’s the difference, it’s an issue of confidence right?
Okay so, let’s say that the authorities, FBI, or another branch of government interferes and documents charges – should they record criminal charges that someone defrauded someone else then just how much defrauding was involved? If the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the electronic money is actual, and it has a value, consequently, acknowledging it. If they don’t get involved, then any fraud which may or may not have happened sets the entire notion back a ways, and the media will continue to push down the confidence of all electronic 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 despise regulation, but isn’t this how it usually begins. Once it’s regulated credibility is given to the concept, but his digital money theory could also undermine the entire One World Currency strategy or even the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that as well. Can the international economy 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 change in how we see monetary value, wealth, online transactions and the way the real world will mind-meld into our future blurred reality. I just don’t see a lot of people believing here, but everyone needs to, one misstep and we can all be in a world of hurt – all of humanity that is. Please consider all of this and consider it. Now that you have read through this far, has that stirred your views in any way? There is a great deal in the body of knowledge surrounding crypto genius erfahrungen. You can find there’s much in common with topical areas closely resembling this one. You should be careful about making too many presumptions until the big picture is a lot more clear. If you are uncertain about what is required for you, then just take a better look at your particular situation. We will tie all together plus give you a hint of other necessary information.
Bitcoin is farther away from being The numeraire; not only can it be a few, much as Fiat… but its worth is measured in Fiat! Even though Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the approved ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique 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 unique combination of qualities.
In Summary, while Bitcoin has A few advantages over Fiat, namely anonymity and decentralization, it fails in its own claim to being cash. Its advantages will also be questionable; the aim is to limit the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; currently, a few 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’ seem to be accepting the true value of this Bitcoin, no? What this actually means is banks realize that they might exchange Fiat to get Bitcoins… and also to really buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it’s about a week’s worth of printing from the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what practical purpose could they serve?
There would be no Bitcoins left Circulation; a perfect corner. If there are no Bitcoins in flow, how on Earth can they be used as a medium of trade? And, what would the issuers of Bitcoin potentially 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, from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the main issue; why search To get a ‘new money’ when we have the very best money, 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 cash, but in a new social structure, one without Fiat, with no 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 ancient and vital role as honest money… and not a minute before.
Rudy J. Fritsch was created 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 has intimate encounter with financial devastation.
As an engineer and engineer, he Ran a successful family business in Canada for decades, in its peak using over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven from business, he chose to study economics… to detect the cause of the unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ given to miners following 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 an enduring impact and it isn’t yet known whether it is good or bad for ‘Bitcoin’.