Let us say there was hanky-panky involved, let us say somebody hacked the system or stole the digital money. Right now, digital money flies beneath the radar as it isn’t recognized even with all of the new Too Big To Fail regulations on banks, etc.. How can a digital money have worth? Hard 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 most of us agree to this and have trust in the money. What’s the difference, it is a matter of trust right?
Alright so, let’s say that the regulators, FBI, or another branch of government complies and files charges – if they file criminal charges that somebody defrauded someone else then just how much defrauding was demanded? If the government law and justice department put a dollar amount number to that, they are inadvertently agreeing that the electronic money is actual, and it’s a value, thus, acknowledging it. If they don’t get involved, then any fraud that may or may not have occurred sets the whole concept back a ways, and the media will continue to push down the trust of all digital or crypto-currencies.
So, it’s a catch-22 for your government, regulators, and enforcement folks, and they cannot look another way or deny this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but is not this how it usually begins. Once it is regulated credibility is given to the notion, but his digital money theory may also undermine the entire One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the global economy manage that level 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 price, riches, online transactions and the way the real world will mind-meld to our future blurred reality. I just don’t see many people believing here, but everyone should, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please consider all this and consider it. Hopefully, just as with so many other aspects regarding crypto genius erfahrungen, you will need to pay more consideration to some things than others. What is more important for you may be much less so for others, so you have to consider your unique conditions. But we are not done, yet, and there is usually much more to be revealed. Keep reading to discover even more, and what we will do is add a few more important topics and recommendations for you to consider.
Some of these tips really are critical to your understanding, and there is even more going beyond what is about to be covered.
Bitcoin is farther away from being The numeraire; not only can it be a few, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally recognized as a medium of trade, and even if it succeeds to replace the Dollar as the approved ‘numeraire’, it can not 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 humanity has this unique blend of attributes.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the aim is to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is , the ‘mining’ algorithm makes harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; already, a few central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a Significant measure for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true worth of the Bitcoin, no? What this really means is banks recognize that they could trade Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small 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 could they serve?
There would be no Bitcoins left Circulation; a perfect corner. If there aren’t any Bitcoins in circulation, 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 increase the 26 million into… 52 million? To 104 million? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come into the key dilemma; why search To get a ‘new money’ if we have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? All the above. The solution isn’t in a new sort of money, but in a new social arrangement, 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 liberty not tyranny. Once this is achieved, Gold will resume its ancient and vital role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, also fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he has intimate experience with financial destruction.
As an engineer and entrepreneur, he Conducted a thriving family business in Canada for years, at its peak employing over 100 workers, until economic upheaval ruined the sustainability of North American production. Driven out of business, he decided to study economics… to detect the cause of this unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ given to miners after their successful development of the new block is cut in half. Thus, this phenomenon will reduce the given ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however , it does have an enduring effect and it is not yet known if it’s good or bad for ‘Bitcoin’.