Let’s say there was hanky-panky involved, let us say someone hacked the system or stole the digital currency. At this time, digital money flies under the radar as 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 signifies if we all agree to that and have trust in the currency. What’s the difference, it is a matter of trust right?
Alright so, let us say that the authorities, FBI, or another branch of government interferes and files charges – should they record criminal charges that someone defrauded someone else then how much defrauding was involved? In the event the government law and justice department put a dollar sum number to this, they’re inadvertently agreeing that the electronic money is real, and it has a value, thus, acknowledging it. If they don’t get involved, then any fraud which may or may not have occurred sets the whole concept back a long way, and the media will continue to push down the confidence of all digital or crypto-currencies.
So, it is a catch-22 for your government, authorities, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it 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 digital money theory may 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 manage 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 see monetary value, wealth, online transactions and how the real world will mind-meld to our future blurred reality. I just don’t see a lot of people believing here, but everyone should, one misstep and we could all be in a world of hurt – all of humanity that is. Please think about all this and think on it. As we have just stated, crypto genius australia is something that cannot be ignored – or at least should never be ignored. At times there is simply way too much to even attempt to cover in one go, and that is important for you to recognize and take home. We will begin the rest of our conversation right away, but sometimes you have to stop and let things sink in a little bit. This is important information that can help you, and there is no doubting that. If you proceed, we know you will not be disappointed with what we have to offer in this article.
Bitcoin is further away from being The numeraire; not just is it a number, much as Fiat… but its worth is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in preserving value for thousands of years. Nothing else in touch of humankind has this exceptional combination of attributes.
In Summary, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages are also questionable; the aim would be to restrict the ‘mining’ of Bitcoins into 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins may 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 value of the Bitcoin, no? This actually means is banks recognize that they might exchange Fiat for Bitcoins… and to really 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 in Flow; 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 possibly do to defend against such a destiny? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat print parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat supposedly loses value throughout ‘over-printing’…
We come to the key issue; why hunt To get a ‘new money’ when we already have the best money, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each 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 huge liberty not tyranny. Once this is achieved, Gold will restart its ancient 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 encounter with financial destruction.
As an engineer and entrepreneur, he Ran a thriving family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American manufacturing. Driven from business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving occurs when the Amount of ‘Bitcoins’ awarded to miners after their successful development of this new block is cut in half. Therefore, this phenomenon will cut the awarded ‘Bitcoins’ from 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’.