What do you say to this? Ouch. Does this demonstrate that the naysayers calling it a Ponzi Scheme were right? Can they get the last laugh, or is this just an expected evolutionary process of disturbance as all the kinks are worked out? Well, consider this thought experiment I’d.
Let’s say there was hanky-panky involved, let’s say someone hacked the system or stole the digital money. Right now, digital money flies under the radar since it is not recognized even with all the new Too Big To Fail regulations on banks, etc.. How can a digital currency 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 money. What’s the difference, it is an issue of trust right?
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 place a dollar sum number to that, they are inadvertently agreeing that the electronic currency is real, and it’s a value, thus, acknowledging it. When they don’t get involved, then some fraud which may or may not have happened sets the whole notion back a ways, 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, regulators, and enforcement people, 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 begins. Once it’s regulated credibility is given to the concept, but his electronic money concept may also undermine the whole 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 global market handle that degree of disturbance? 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, riches, online transactions and the way the real world will mind-meld into our prospective blurred reality. I simply don’t see a lot of people believing here, but everyone needs to, 1 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. Do you have any thoughts at this stage? No question, we are just getting going with all that can be acknowledged about 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. It is always a wise decision to determine what your circumstances call for, and then go from that point.
The concluding discussion will solidify what we have revealed to you up to this point.
Bitcoin is farther away from being The numeraire; not just is it a number, much as Fiat… but its value is measured in Fiat! Even though Bitcoin becomes internationally recognized as a medium of exchange, and even if it succeeds to replace the Dollar as the accepted ‘numeraire’, it can never possess an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is exceptional in storing value for centuries. Nothing else in reach of humankind has this unique combination of attributes.
In conclusion, while Bitcoin has Some advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being money. Its advantages are also 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 fix, then impossible following the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, some central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate worth of the Bitcoin, no? What this actually means is banks recognize that they might trade 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 modest change to the Fiat printers; it is roughly a week’s worth of printing by the US Fed alone. And, once the Bitcoins purchased and locked up in the Fed’s ‘wallet’… what useful purpose would they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there are no Bitcoins in circulation, how on Earth can they be used as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key issue; why hunt For a ‘new money’ when we have the best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? 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… without IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is achieved, Gold will resume its early and critical 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 entrepreneur, he Conducted a successful family business in Canada for decades, at its peak employing over 100 workers, until economic upheaval ruined the profitability of North American manufacturing. Driven out of business, he decided to study economics… to discover the origin of the unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners following their successful development of the new block is cut in half. Thus, this phenomenon will cut the given ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have an enduring impact and it isn’t yet known whether it’s good or bad to ‘Bitcoin’.