As an engineer and engineer, he Ran a thriving family business in Canada for years, at its peak employing over 100 workers, until economical upheaval destroyed the profitability of North American production. Driven from business, he chose 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 reduce the awarded ‘Bitcoins’ out of 25 coins to 12.5. It is not a new thing, however it does have a lasting effect and it is not yet known whether it is good or bad for ‘Bitcoin’.
Okay so, let’s say that the authorities, FBI, or another branch of government interferes and documents charges – should they record criminal charges that somebody defrauded someone else then just how much defrauding was involved? If the government law and justice department place a dollar sum number to that, they are inadvertently agreeing that the digital currency is actual, and it’s a value, consequently, acknowledging it. If they don’t get involved, then some fraud which might or might not have occurred sets the whole notion back a long way, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for your authorities, regulators, and enforcement folks, and they cannot look the other way or deny this trend any longer. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually starts. Once it is regulated credibility is given to the concept, but his electronic currency concept could also undermine the entire One World Currency plan or even the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international market handle that level 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 see monetary price, wealth, online transactions and the way the real world will mind-meld to our future blurred reality. I simply don’t see a lot of people believing here, but everyone should, 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. We are offering you solid pieces of advice here, but do be aware that some are more critical to understanding crypto genius.
But that can vary a bit, and it really just depends on how you want to use the information. Of course there is rather a lot more to be learned. The final half of the article will offer you a lot more solid info about this. It is all about giving information that develops on itself, and we think you will value that.
Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it manages 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 true, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in touch of humanity has this exceptional blend of qualities.
In conclusion, 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 intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘big banks’ appear to be accepting the legitimate value of the Bitcoin, no? This really means is banks realize that they could trade Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins projected would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even modest change to the Fiat printers; it’s about a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up at the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left Flow; an ideal corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Combine the Fiat print parade? But , from the quantity theory of money, Bitcoin would begin to lose value, as Fiat supposedly loses value throughout ‘over-printing’…
We come to the main issue; why hunt For a ‘new money’ if we already have the very best cash, Gold? Fear of Gold confiscation? Lack of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer isn’t in a new form of money, but at 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 huge independence not tyranny. Once this is achieved, Gold will restart its early and critical 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 has intimate experience with financial destruction.