The Birth of Cryptocurrency and the Future of Financial Transactions

As an engineer and engineer, he Ran a thriving family business in Canada for decades, in its peak employing 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 Number of ‘Bitcoins’ given to miners after their successful development of this new block is cut in half. Therefore, 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 isn’t yet known if it is good or bad to ‘Bitcoin’.

Okay so, let us say that the authorities, FBI, or another branch of government interferes and documents charges – should they record criminal charges that somebody defrauded somebody else then just how much defrauding was demanded? In the event the government enforcement and justice department put a dollar amount number to that, they are inadvertently agreeing that the digital money is real, and it has a value, consequently, acknowledging it. If they don’t get involved, then some fraud which may or may not have happened sets the whole concept back a ways, and the press will continue to drive down the confidence of all digital or crypto-currencies.

So, it’s a catch-22 for the government, regulators, and enforcement folks, and they cannot look another way or deny that this trend no more. Is it time for regulations. Well, I personally despise regulation, but is not this how it usually begins. Once it’s regulated credibility is given to the notion, but his electronic money concept may also undermine the entire One World Currency strategy or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for that 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 shift in how we view monetary value, wealth, online transactions and how the actual world will mind-meld to our prospective blurred reality. I simply don’t see a lot of people believing here, but everyone should, one 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. The relative impact of crypto genius software on your situation can be remarkable and cause issues of all kinds. No one really can adequately address all the different situations that could arise with this particular topic. But I wanted to stop for a moment so you can reflect on the value of what you have just read. We are highly certain about the ability of what we offer, today, to create a difference. Our final few items can really prove to be powerful considering the overall.

Bitcoin is further away from being The numeraire; not only is it a few, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of exchange, and even though it manages to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is exceptional in being quantified by a real, unchanging physical quantity. Gold is unique in preserving value for thousands of years. Nothing else in touch of humankind has this unique blend of attributes.

In Summary, 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 to 26,000,000 units; this is the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.

Wow, sounds like a Significant step for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate worth of the Bitcoin, no? This actually means is banks recognize that they might exchange Fiat to get Bitcoins… and to really 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 roughly 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 would they serve?

There would be no Bitcoins left in Circulation; a perfect corner. If there aren’t any Bitcoins in circulation, how on Earth could they be applied as a medium of exchange? And, what would the issuers of Bitcoin possibly 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 then, by the quantity theory of money, Bitcoin would begin to eliminate value, as Fiat allegedly loses value through ‘over-printing’…

We come into the main dilemma; why search To get a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The answer is not in a new sort of money, but at a new social arrangement, one without Fiat, without Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is accomplished, Gold will restart its early and critical role as honest money… and not a minute before.

Rudy J. Fritsch was created in Hungary In 1947, also 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.

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